LIPA Saved Over $20 Million Bringing Low Cost Power

October 11, 2007

LIPA Saved Over $20 Million During Summer with Neptune Cable Bringing Low Cost Power from New Jersey to Long Island

New Cassel, NY-October 11, 2007-The Long Island Power Authority (LIPA) today announced that it saved over $20 million this summer by using the new Neptune electric transmission cable to bring nearly 1.2 million megawatt hours (MWh) of low cost power to Long Island during the peak summer season in July, August and September when demand for electricity is highest.

The Neptune cable, which is privately owned and operated and links Long Island directly to Mid-Atlantic power supply resources for the first time, is estimated to save LIPA hundreds of millions of dollars in energy supply costs over the next 20 years.

When coupled with the nearly $200 million in savings by importing lower cost energy via the Cross-Sound Cable since June, 2004, the savings derived by the Neptune cable will help LIPA’s efforts to minimize its power supply costs.

“This historic power project has given Long Island direct access to a lower cost, more diversified power supply in the Pennsylvania, New Jersey and Maryland (PJM) power market that stretches from New Jersey to Illinois,” said LIPA President and CEO Kevin S. Law. “The money saved this summer is significant and in the long term will help us meet our objective of holding down our power supply charges as much as possible.”