October 2002

Freeport Receives U.S. Army Corps of Engineers Approvals: Environmental Permits Advance Implementation of Proposed Power Plant 2: Electric Generation Projects One Step Closer to Start of Construction

(Freeport, New York, October 15, 2002) - The Village of Freeport Electric Department has received environmental approvals from the U.S. Army Corps of Engineers that advance the progress of the Power Plant 2 Generation Projects leading to construction of both the Village and PPL combustion turbines.

The permits granted under the Nationwide Permit program authorize construction of the projects and their ancillary facilities in areas under Corps of Engineers jurisdiction. These facilities include the acoustic abatement wall on the shoreline site, as well as the off site installation of an underground electrical transmission line between the project site and the LIPA Meadowbrook switching station, and the natural gas pipeline from the KeySpan facility near Babylon Turnpike to the proposed project.

"Freeport Electric is pleased that the proposed generation projects at Power Plant 2 are advancing through the environmental permitting processes. Each approval moves us closer to start of construction so that the Village and PPL facilities may be on line next summer to serve the electric needs of the Village and Long Island community, respectively," stated Hubert Bianco, Superintendent of Electric Utilities.

"Receiving the Corps of Engineers approvals in this timely manner following submittal speaks to the thought and attention given to design and environmental aspects of this project," continued Barbara Jefferies, Sr. Program Manager for ENSR International, the Village's independent environmental and permitting consultant for this project.

The key permit conditions included by the Corps of Engineers require construction measures to prevent materials or debris from entering the adjacent waterways. The conditions to the Corps of Engineers approval also require compliance with New York State Department of Environmental Conservation (NYSDEC) regulations. Applications have already been filed with NYSDEC and are progressing through that regulatory process. "Recognizing the regional importance of new energy resource development, NYSDEC staff have been working in a very cooperative and timely fashion in reviewing the Village applications," Ms. Jefferies added. "We anticipate state permit approvals in the time frame to allow construction of the Village facility for summer 2003 operations."

"Each environmental permit approval should affirm that the projects developed and implemented not only serves the electric needs of the Village of Freeport and Long Island," concluded Mr. Bianco, "it also protects the environmental quality and health and safety of Freeport and neighboring communities."