LIPA Issues RFP for Power Supply Management Services

October 23, 2007

Long Island Power Authority Issues RFP for Power Supply Management Services

Uniondale, NY-October 17, 2007- The Long Island Power Authority (the Authority) today issued a Request for Proposals (RFP) soliciting proposals from firms interested in providing Power Supply Management (PSM) Services for a term of up to 10 years. PSM Services include the bidding and scheduling of generation resources either owned or controlled by the Authority as well as LIPA’s transmission assets into the New York, New England, and Pennsylvania - New Jersey - Maryland markets in which the Authority participates as well as the operation of the Authority’s power system in a least cost manner.

The PSM Services obtained in the RFP are currently being provided by KeySpan Energy Trading (now National Grid) under two contracts that expire at the end of 2009.

“In this RFP, the Authority is seeking to lower its costs of managing its generation and transmission resources while maintaining or improving the quality of such services,” said Authority President and CEO Kevin S. Law.

The PSM Services contracts obtained from the RFP would provide the Authority with services in the three areas listed below. The Authority may select up to three entities to provide these services.