Interim Power Supply Agreement Signed

(Freeport, New York, April 4, 2002) - A press conference attended by Governor George E Pataki, New York State Senator Charles Fuschillo, New York State Assemblyman David G. McDonough, Freeport's Mayor William F. Glacken and LIPA Chairman Richard Kessel, was held today at Freeport's Power Plant 2 to announce the signing of an Electricity Transaction Agreement between the Inc. Village of Freeport and the Long Island Power Authority. According to the terms of the Agreement, from May 1, 2002, to March 31, 2003 LIPA will supplement Freeport Electric department's power resources in order to avoid the use of the Village's two diesel generators while new generating facilities are developed at the Power Plant 2 site.

Freeport's Mayor Glacken thanked the Governor and the many parties involved in facilitating the Agreement. See the Mayor's press conference speech below:

"Good Morning and Welcome! - Governor Pataki, Senator Fuschillo, Richard Kessel, Ray Cowen, and Superintendent Bianco - and the fine leaders and professionals who have worked so hard together to ensure that Freeport Electric and its service to our residents and our businesses continues in the fine tradition started over a hundred years ago.

Governor Pataki, your leadership and vision are the foundation of this agreement. Thank you for the invaluable efforts of your staff and agencies, and for continued support for energy innovation and initiatives here in Freeport.

This agreement represents the commitment of your administration, and the Village Administration to provide cost effective, reliable, clean, environmentally safe electric power to the customers of Freeport Electric and to the Long Island Region.

We stand here at Power Plant 2, a facility that has served this community for over thirty years. The Plant acts as a cornerstone to the Freeport Industrial Park that stands out in our county and in our region as an economic incubator, empowering business and industry to grow and flourish, in today's markets nurtured by our reliable, cost-effective electric service.

The agreement between LIPA and the Village is an important step towards our long-range goal for power supply in the Village and region - for next summer - the next decade - and beyond. As LIPA culminates its continuing negotiations, the Village stands ready to facilitate the start of construction of new power generating facilities right here at Power Plant 2, bringing a new and modern source of cost effective, reliable and environmentally-sound electricity generation to the Village, our customers, our neighbors and our region. We look forward to our continued partnership to bring this vision to action."