| FOR IMMEDIATE RELEASE January 9, 2003 |
Contact: Media Relations: (516) 719-9892 Media pager: (516) 525-LIPA |
Kessel Comments on Cross-Sound Cable Project
LIPA Board Briefed on Need for Cable for Summer 2003
Uniondale, NY – January 9, 2003 – At a special meeting of the Long Island Power Authority (LIPA) Board of Trustees held on Jaunary 9th, LIPA Chairman Richard M. Kessel briefed the Board of Trustees on the status of the Cross-Sound Cable Project and the need to press for the 330 megawatt cable to be allowed to operate by the State of Connecticut.
The following are excerpts from Mr. Kessel’s remarks to the LIPA Board of Trustees.
“TransEnergie [cross-Sound cable project developer] has determined they will not pursue the regulatory process to put the cross-Sound cable in operation.
“Connecticut has put every barrier possible [in the way of TransEnergie] to prevent the cable from operating.
“It’s disturbing that Connecticut continues to thwart interstate commerce and the reliability of the region’s electric transmission grid with politics.
“The Army Corps of Engineers has said that the cable presents no environmental threat as installed.
“The cable is ready to operate. It has been tested and energized.
“It was ready to operate last summer under an emergency order issued by the Department of Energy.
“This is an issue that does not just impact Long Island. It impacts the entire Northeast region. It could impact national security.
“LIPA’s aggressive programs to conserve energy and add new on-Island generation resources kept the lights on last summer. And we’re adding more on-Island resources for summer 2003, as we continue to stress and promote conservation.
“But the failure of a base-load plant or one of our other cables during a heat wave could put Long Island in jeopardy. And the same holds true for Connecticut.
“It’s imprudent not to put the cross-Sound cable in operation.
“It will be the goal of the Authority to take all steps necessary to energize the cable.
“We will review all of our legal options, and, if necessary, will seek intervention by the Department of Energy.
“It is our intention to have the cable operate as soon as possible, but at the very least by summer.
“This is the underwater version of Shoreham. But fortunately, LIPA’s ratepayers, through LIPA’s prudence, are not at risk. All of the costs to build the cable have been borne by the Cross-Sound Cable Company. This is a merchant cable. LIPA will not pay to use it until the cable begins to carry electricity to Long Island.”
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LIPA is a not-for-profit municipal retail electric utility that serves nearly 1.1 million electric customers in Nassau and Suffolk counties and in the Rockaways Peninsula in Queens. It owns and operates the region’s electric Transmission and Distribution System, and acquires electricity from a number of power providers to meet customer demand. LIPA provides a full range of EnergyWise programs to help both residential and commercial customers save money by using less electricity. LIPA does not own any electric generation assets on Long Island and does not provide natural gas service.
Information about LIPA and its products and services is available on its Web site 24/7 at www.lipower.org.
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