February 2002

Progress on New Generation at Freeport Power Plant 2: PPL Global Selected as Preferred Vendor

(Freeport, New York, February 26, 2002) - Freeport Electric Department announces that the Village has selected PPL Global as the preferred vendor to design and construct the proposed new generation facilities to be developed at the Power Plant 2 site. PPL Global was determined to be the sole responsive bidder in response to the Village's request for bids for a vendor to manage the design and construction of two new combustion turbine facilities. Selection of PPL allows the Village and PPL to finalize terms and conditions of their contract in the coming weeks, as well as pursue related agreements with LIPA and KeySpan, and other regulatory and environmental approvals. It is planned that Freeport Electric will own and operate one of the two facilities, and for PPL Global to own and operate the second facility in this project.

Selection of PPL Global also allows the Environmental Assessment for the proposed project to be completed incorporating vendor and project-specific technical information. The Environmental Assessment is being prepared pursuant to the State Environmental Quality Review Act. The Village of Freeport will review the Environmental Assessment Report when it is completed. Based upon a formal coordination process completed with the involved regulatory agencies, the Village will make a formal environmental determination when it has completed its review.

PPL Global is a leading operator of electric generating facilities in the Northeast and Western United States. On Long Island, PPL Global is developing combustion turbines for LIPA at Edgewood (two turbines) and Shoreham (two turbines), as well as a 300 MW facility in Kings Park.