FEATURE/New Study Examines Long Island's Energy Issues; C.W. Post's Center for Management Analysis Proposes Solutions for Avoiding a Crisis.

Business Editors & Energy Writers

FEATURE.....

--(BUSINESS WIRE FEATURES)--March 14, 2002

Long Island's energy supply is at a critical crossroad, with many important issues on the table. The summer 2001 heat wave and resulting severe test of Long Island's generating capacity coupled with the September 11 terrorist attack have highlighted the critical importance of electric supply to Long Island. In the report, "Securing Long Island's Energy Supply," the Center for Management Analysis at the C.W. Post Campus of Long Island University in Brookville, N.Y. explores how to deal with the vulnerability of our energy supply to acts of terrorism and at the same time address the ever-increasing need for more energy. It includes a look at the proposed LIPA purchase of KeySpan facilities, as well as proposals for improved electric transmission systems, new electric interconnections, new gas supply pipelines, conservation, alternate energy supplies, and the establishment of new generating plants including a possible 580 MW project in Yaphank.

"The energy situation on Long Island is sitting precariously between stability and crisis," says Matthew Cordaro, Ph.D., director of the Center for Management Analysis and Chairman of C.W. Post's Department of Health Care and Public Administration. "With careful planning and the implementation of aggressive policies we can land squarely on the side of stability."

Long Island residents and businesses barely escaped rolling blackouts in summer 2001, when Long Island's generating capacity reached critical levels. LIPA's near-term plan for 400 megawatts of new capacity will help alleviate the immediate crisis next summer. But a more extensive long-term plan for increased supply and security is necessary.

The study makes several key observations and recommendations:

-- After taking every possible step to maximize the physical security of
existing facilities, the next and most crucial key to minimize the threat of
terrorism is diversity of generating sites, electric and gas transmission
interconnections and fuel sources.

-- The construction of new power-generating facilities - even to the extent of
providing redundant coverage - is critical to the uninterrupted delivery of
power. Power plants built by private developers will aide in this.

-- Privately developed plants can insulate the public from the financial risks
of the old system of regulated rates for utilities and have less of an
environmental impact than existing facilities.

-- With the industry seeing the cancellation of many power plant projects
nationwide due in part to today's sluggish economy, it should be a serious
concern for Long Islander's that private developers will not move ahead with
their projects in this region.

-- The Long Island Power Authority should exercise its option to purchase
KeySpan-owned plants in the region if an acceptable price can be negotiated.
Resale of these plants by LIPA, however, may not be a viable option because it
is not clear how this would reduce cost to the customer.

-- The 580 MW project in Yaphank should proceed but there should be an
equitable sharing in the costs of transmission upgrades between LIPA and the
developer.

-- Current permit and licensing processes must be streamlined to shorten the
time and reduce the cost of obtaining construction permits.

-- There continues to be a pressing need for conservation and the promotion of
alternative energy supplies, including solar electric applications for
commercial and residential use, geothermal heat pumps, grid connected fuel
cells, and wind turbines.

"The more alternatives we explore," says Cordaro, "the more options - and cost savings - residents and businesses will have and the more secure the Long Island energy supply will be."

The Center for Management Analysis (CMA) is an academically based organization designed to serve the diverse needs of government, business and the community. Its purpose is to provide a climate for research, consultation, and problem solving by uniting educators and practitioners in addressing public issues through reasoned dialogue and analysis. The CMA is a unit of the College of Management at the Long Island University's C.W. Post Campus in Brookville. The present focus of the Center is on issues related to energy, environmental management and economic development.

The Center's director, Matthew C. Cordaro, Ph.D., is a 35-year veteran of the energy industry. He has extensive hands-on, management, and administrative experience in all sectors of the energy business ranging from investor owned or privately held utilities to public energy providers and independent system operators. He started his career with a 22-year run with Long Island Lighting Company, leaving in 1988 as a Senior Vice President to become president of an independent power producer. Cordaro has since served as CEO of two major utility companies, and has played a leading role in representing public power before industry and government organizations including appearances before the U.S. Congress and other federal agencies.

For additional information or a copy of "Securing Long Island's Energy Supply," please call the C.W. Post Office of Public Relations, [phone] or email [e-mail].