LIPA and KeySpan have announced a second project for alleviating the Island's energy concerns. The latest proposal is the placement of two LM6000 generating units at the Glenwood gas facility in Glenwood Landing. The two units will provide 79 megawatts of electricity. That is enough power to supply nearly 80,000 customers.

"LIPA is underscoring the need for energy conservation, and the development and use of renewable alternative energy technologies on Long Island through LIPA's $170 million, five year, Clean Energy Initiative (CEI)," said LIPA chairman and CEO Richard M. Kessel. "However, conservation alone is not enough to meet Long Island's growing energy needs. Public/private partnerships to build new, state-of-the-art facilities such as the proposed Glenwood Landing facility will play a significant role, along with conservation in meeting Long Island's electric needs for the future."

"This is another example of how the public/private partnership is working on Long Island," said Robert B. Catell, chairman and CEO of KeySpan. "Together, LIPA and KeySpan are helping to develop projects that work for the region. By proposing new generation fueled by clean burning natural gas and exploring alternative energy sources, we are addressing Long Island's energy needs in a strategic and environmentally responsible way."

KeySpan is proposing the construction of a state-of-the-art, single cycle generating facility using two combustion turbines fueled primarily by natural gas. The two units will be 30 percent more efficient than a conventional combustion turbine peaking unit. In addition, the Glenwood facility will be designed with state-of-the-art air emission control technologies. These emission controls, combined with the use of natural gas, will make the facility one of the cleanest on Long Island and among the cleanest facilities of its kind in the country.

KeySpan Energy Development Corporation will oversee the installation of these units at the Glenwood facility. Construction is anticipated to begin in January 2002 and the facility is projected to be on line next summer. The Long Island Power Authority has entered into an agreement to purchase 100 percent of the power for its customers.

The proposed site is located on KeySpan owned property that is currently used for electric generation. In addition, its close proximity to both LIPA's transmission system and KeySpan's natural gas main makes strategic sense for an efficient and effective facility.

This is the second proposal made in two months by LIPA and KeySpan to help address the region's energy needs. In May, KeySpan announced its proposal to construct a 250 MW combined cycle unit at Spagnoli Road in Melville. The Long Island Power Authority has agreed to purchase 50 percent of that generation with the remainder used to serve local residents and businesses. If approved, construction on the Spagnoli Road Energy Center will begin in 2003 and is projected to be completed and on line by 2004.

A member of the S & P 500, KeySpan is the largest distributor of natural gas in the Northeast, with 2.4 million gas customers and more than 13,000 employees. KeySpan is also the largest investor-owned electric generator in New York state and operates Long Island's electric system serving 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan also manages a dynamic portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, an energy product, repair and service company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy product, repair and services company for business customers.

KeySpan also has strategic investments in natural-gas exploration, production, pipeline transportation, distribution and storage, Canadian gas-processing and fiber-optic cable. KeySpan is traded on the New York Stock Exchange under the symbol "KSE." For more information about the company, visit KeySpan's web site at www.keyspanenergy.com.

LIPA owns the retail electric system on Long Island, and provides electric service to nearly 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA does not provide natural gas service.