LIPA Applies for $119 Million in Stimulus Funding For Smart Grid Projects

(Uniondale, N.Y.) – The Long Island Power Authority (LIPA) announced it has applied with the U.S. Department of Energy (DOE) for up to $119 million in stimulus funding to enhance LIPA’s smart grid technology, a high-tech approach for managing the electric system.

The Authority filed two applications yesterday which call for the creation of a $49.6 million Dynamic Reactive Support System Project (DRSS-II) and a $69.5 million LIPA Smart Grid Communications Backbone. The DRSS-II is a state-of-the-art voltage management system on the LIPA transmission system that will reduce the possibility of blackouts and cut costs and emissions by eliminating some of the mandatory use of oil and gas fired generators. The LIPA Smart Grid Communication Backbone is a fiber optic and radio communications network that will connect all
LIPA substations enabling LIPA to take the next step in implementing a smart grid on Long Island.

LIPA is also participating in a statewide transmission system phasor monitoring project that is being submitted by the New York Independent System Operator. This project promises to enhance transmission system reliability throughout the region.

“It’s time for New York to become the global leader in the clean energy economy, and the development and deployment of smart grid technology is a critical component of my New Economy Jobs plan for New York,” said Governor Paterson. “I am pleased that LIPA is aggressively pursuing federal American Recovery and Reinvestment Act dollars for these key initiatives that will no doubt help create a better and brighter economy, putting New Yorkers to work while reducing energy consumption and energy costs.”

“We must be smarter and more responsible about how we use and manage our electric consumption,” said LIPA President and CEO Kevin S. Law. “These applications are consistent with Governor Paterson’s 45×15 initiatives and reinforce my commitment to secure key federal dollars to move ahead with these important smart grid projects which will modernize our electric system, reduce energy costs and stimulate the local economy with the creation of new clean energy jobs.”

LIPA will file a third application later this month for the development of a Smart Grid Corridor Project which was announced by Governor Paterson and Congressman Steve Israel earlier this year.

The Smart Grid Corridor Project located along Route 110, is a partnership comprised of LIPA, Stony Brook University and Farmingdale State College. This project will assist residential, commercial and industrial LIPA customers in monitoring and reducing energy usage, increase reliability, encourage energy efficiency by facilitating smarter technologies, and create clean energy jobs through the new smart grid businesses and new educational curriculums. It would also create New York State’s first Smart Campus that would directly tie smart grid systems with energy conservation and renewable technologies.

LIPA’s application filing has met the DOE’s deadline of August 6 for consideration in the first round of Smart Grid Investment Grant funding. The DOE has indicated that it plans subsequent rounds late this year and in early 2010.

LIPA was the first utility in New York to deploy smart meters in March of 2009 when the Authority announced a pilot program in Hauppauge and Bethpage to provide information on how smart meters will help customers receive real-time information about their energy usage, help them to use energy more efficiently and save on their electricity bills.

LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org