July 2003

New York State Public Service Commission Approves Freeport Gas and Electric Transmission Lines: Certificate of Environmental Compatibility and Public Need Permits Construction of Power Plant 2 Electric Generation Project Facilities

(Freeport, New York, July 29, 2003) - The Village of Freeport Electric Department has received approval from the New York State Public Service Commission (PSC) to construct the gas and electric transmission lines needed for the new Power Plant 2 Generation Project. The 2.5 mile, 12-inch diameter, 350 psi gas transmission line will supply the Village Power Plant 2 Generation Project combustion turbine. The 3-mile 69 kV electric transmission line will connect the facility to the LIPA electric distribution system. Both transmission lines will also support the second combustion turbine to be constructed at Power Plant 2 (PP2) by a merchant developer to serve LIPA in the future.

The orders granting the Certificates of Environmental Compatibility and Public Need were granted by the PSC on July 23, 2003 and authorize construction to begin August 1, pending receipt of all required local permits. The transmission routes are wholly located within existing rights-of-way. For most of their length, from the Power Plant 2 site to Sunrise Highway, the gas and electric transmission lines run parallel to each other. North of Sunrise Highway, the gas line follows its final leg along Babylon Turnpike to connect to the existing KeySpan gas distribution system, and the electric transmission line continues east along Sunrise Highway to reach the existing LIPA Bellmore substation located on Newbridge Road.

Construction of the lines is expected to commence early in August by Welsbach in partnership with Bancker Construction, the Village's contractors. The entire transmission line installation is scheduled for completion and connection to the LIPA and KeySpan facilities in November of this year.

Installation involves open cut trenches across Merrick Road and along Village roads and rights-of-way. Underground directional boring techniques will be used to install the lines across Sunrise Highway and the Meadowbrook interchange. Directional boring avoids disruption of traffic on Sunrise Highway, and mitigates potential environmental impacts to local freshwater streams.

"Freeport Electric is pleased to have completed the PSC review and approval process in this timely manner. The gas and electric transmission lines are critical links for these new projects. The August start of construction will support our overall project schedule," stated Hubert Bianco, Superintendent of Electric Utilities, "and provide essential capacity before next summer to serve the electric needs of the Village."