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LIPA TRUSTEES APPROVE ACTIONS TO MEET LONG-TERM ENERGY NEEDS

(The following is a reformatted version of a press release
issued by The Long Island Power Authority and received via
electronic mail. The release was confirmed by the sender.) 
October 25, 2012 
LIPA Trustees Approve Actions to Meet Long Island’s Long-Term
Energy Needs 
Plan reinforces LIPA’s commitment to diversify its energy
portfolio to meet future resource needs through a combination of
new and repowered generation facilities, new renewable energy
resources and continued commitment to energy efficiency 
Uniondale, NY - The Long Island Power Authority (LIPA) Board of
Trustees voted today to authorize staff to begin negotiating
potential power purchase agreements (PPA) for new generating
resources consistent with LIPA’s Electric Resource Energy Plan.
The Trustees also authorized actions related to diversifying
LIPA’s resource portfolio, including efforts and investments to
improve energy efficiency through the Efficiency Long Island
Program, its renewable energy programs, future renewable energy
procurements, and other actions and investments targeting up to
a minimum of an additional 400 megawatts (MW) by 2018 resulting
in a total of over 700 MW installed. 
LIPA Chairman Howard Steinberg called the action today
significant and precedent setting. “The action today to support
the addition of new, clean and more efficient natural gas, base-load generation, coupled with an aggressive renewable energy
program and continued support for our $924 million 10-year
energy efficiency program, positions LIPA to diversify its
energy portfolio and begin the transition to a cleaner, more
reliable, and reasonably priced electric system on Long Island.” 
“Today’s action by the LIPA Board is a giant step forward toward
securing our energy future,” said LIPA Chief Operating Officer,
Michael Hervey. “While LIPA has consistently supplied safe and
reliable energy to our customers over the last decade, the fact
is that peak demand continues to grow on Long Island. This
comprehensive energy plan will ensure that we will be able to
meet our future energy needs using a diverse mix of energy
resources and efficiency measures that are reliable, economic,
and environmentally friendly.” 
Competitive results of LIPA’s Generation and Transmission
Request for Proposals
In 2010, LIPA issued a request for proposals (RFP) seeking new
and/or repowered resources to help meet Long Island’s growing
energy demand and the requirements of the New York State
Reliability Council and New York Independent System Operator. 
LIPA received 45 proposals from 16 entities on March 31, 2011,
which reflected a variety of technologies and project sizes. The
analysis showed that the best proposals provided potential
savings of several hundred millions of dollars while the less
competitive proposals could have cost several billion dollars. 
Following a comprehensive analysis, it was determined that the
projects proposed by J-Power USA Development Co., Inc. (J-Power)
at the Shoreham generation site and by Caithness Long Island II,
LLC. (Caithness) in Yaphank were the highest ranked proposals.
LIPA Trustees decided to conduct negotiations with each proposer
to ultimately determine which project would be able to receive
all necessary regulatory approvals and permits in a timely
fashion and would provide the best value to LIPA customers. 
“The selection of new generation resources has the potential to
create 700 to 1300 highly-skilled construction and trades jobs
on Long Island and up to 30 permanent jobs during operation,
further helping the region recover from the most severe economic
downturn since the Great Depression. This coupled with
significant expansion of LIPA’s renewable energy program and
continued investment in energy efficiency will add thousands of
new jobs to the region and improve our environment,” said Paul
DeCotis, LIPA’s Vice President of Power Markets. “The addition
of new base-load resources will also provide the opportunity and
resources necessary to repower the Port Jefferson steam plant,
which must be removed from service prior to repowering. Securing
new additional generation now will further support this effort
and reduce customer costs over what they might otherwise have
been.” 
The Caithness Project
Caithness (a wholly owned subsidiary of Caithness Energy LLC.)
proposes to develop, operate, and own a new 706 MW natural gas-fired, combined cycle power plant in Yaphank, New York in the
Town of Brookhaven on the same site as its existing 326 MW
combined cycle generation plant. Caithness proposes to sell the
entire output of the proposed project to LIPA under a 20-year
PPA following its proposed May 1, 2017 commercial operation date
(COD). Natural gas for the new plant would be delivered using
either the existing National Grid gas system or through a new
gas pipeline being proposed by Northville Industries. 
The J-Power Project
J-Power (an indirect wholly-owned subsidiary of Electric Power
Development Co. Ltd.) proposes to develop, operate, and own a
new 377 MW natural gas-fired, combined cycle power plant in
Shoreham, New York in the Town of Brookhaven on a site owned by
LIPA. J-Power proposes to use the latest Mitsubishi 501G
combined cycle technology designed for maximum efficiency. 
J-Power proposes to sell the entire output of the proposed
project to LIPA under a 20-year PPA following its proposed for
May 1, 2017 COD. Natural gas for the new plant would be
delivered using either a new marine, pipeline extension proposed
by Iroquois Gas Transmission or through a new gas pipeline being
proposed by Northville Industries. 
Before any selected project could commence construction, a full
environmental review must be completed by the developer, and
LIPA’s Board of Trustees may be required to adopt all
environmental findings produced prior to authorizing the
execution of any resulting PPA. The agreement would also be
subject to review and approval of the New York State Attorney
General and the New York State Comptroller. 
“The Long Island Federation of Labor, AFL-CIO fully supports the
decision by the Long Island Power Authority Trustees to maintain
a dependable supply of power on Long Island. Building a new
generating facility here on Long Island is the right decision
for our regional economy. LIPA’s decision will create hundreds
of construction jobs and allow for the repowering of existing
facilities, which will save existing union jobs.” John R. Durso,
President, Long Island Federation of Labor, AFL-CIO 
LIPA’s continued commitment to invest in efficiency and
renewable energy
While neither project selected will fully meet LIPA’s future
energy needs on its own, LIPA envisions that this gap will be
made up through a combination of energy efficiency, clean
technologies, and renewable projects such as solar, wind, and
fuel cells. In furtherance of implementing its electric resource
plan, LIPA will expand its successful solar rebate and feed-in
(FIT) tariff and issue a new competitive solicitation for
renewable energy on Long Island, actions that are consistent
with the recommendations of Governor Cuomo’s Energy Highway
Taskforce. Specifically, LIPA will: 
Immediately modify the Solar Pioneer program to provide rebates
to residential customers who lease qualifying solar PV systems. 
Commit to issuing an additional 100 MW of renewable energy
capacity, no later than July, 1, 2013 under the Clean Solar
Initiative feed-in-tariff (FIT) 
Commit to modifying LIPA’s tariff, no later than July 1, 2013 to
allow wind, fuel cells and “other” renewable resources to
compete for an additional 20 MW block of capacity.
Commit to issuing a competitive procurement for additional
renewable energy supply, including offshore wind, for up to 280
MW of capacity by 2018.This procurement, combined with the
expansion of the FIT would bring an additional 400 MW on-line by
2018. 
Along with NYPA and Con Edison, continue to pursue and seek
private and federal funds where feasible for the LI-NYC Offshore
Wind Project which could produce between 350-700 MW and is
currently in the lease application stage with The Bureau of
Energy Ocean Management. 
In addition, LIPA will initiate a process involving LIPA staff,
renewable and energy efficiency industry experts, and
environmental and consumer interest groups to expand LIPA’s use
of renewable resources and efficiency programs beyond 2018 to
ensure that LIPA is adding renewable energy capacity at a level
comparable to the rest of the state. 
“In early 2012, Governor Cuomo announced the New York Sun
Initiative with goals to significantly expand the deployment of
solar energy in New York State. LIPA is to be commended for
their vision and their response to the New York Sun Initiative
in expanding the deployment of solar on Long Island. A goal of
400 MW by 2018 is a huge step in the right direction and LISEIA
looks forward to working with LIPA on the details of each of the
initiative,” said Chairman of The Long Island Solar Energy
Industries Association, Sail Van Nostrand. 
“We commend the LIPA staff and Board for their continued work to
promote and expand solar on Long Island, said Co-Founder and CEO
of Green Logic Energy, Marc Clejan. “The addition of 100 MW of
solar thru the Feed-In Tariff program is a great step in that
direction. We particularly commend LIPA on their commitment to
ensure the FIT program continues to encourage the development of
more smaller distributed generation sites which help create a
broader, deeper and more sustainable market for renewable energy
on Long Island.” 
“We can’t afford not to invest in renewable energy,” said LIPA
Vice President of Environmental Affairs, Michael Deering.
“However, the time, the projects and the price has to be right
in order to continue to meet our on-island regulatory
requirements and continue to keep prices stable for our
customers. The renewable energy and efficiency component of this
plan will allow us to further diversify our energy portfolio and
reduce peak load with projects that are environmentally and cost
friendly.” 
LIPA, a non-profit municipal electric provider, owns the retail
electric Transmission and Distribution System on Long Island and
provides electric service to more than 1.1 million customers in
Nassau and Suffolk counties and the Rockaway Peninsula in
Queens. LIPA is the 2nd largest municipal electric utility in
the nation in terms of electric revenues, 3rd largest in terms
of customers served and the 7th largest in terms of electricity
delivered. In 2011, LIPA outperformed all other overhead
electric utilities in New York State for frequency and duration
of service interruptions. LIPA does not provide natural gas
service or own any on-island generating assets. More information
about LIPA can be found online at http://www.lipower.org. 
LIPA Media Contact
Mark Gross
Office: 516-719-9892
Media Pager: 516-229-7248 
(bjh) NY 
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