Lipa Power Supply Agreement

LIPA also purchases solar energy from a series of solar projects on Long Island as well as hydroelectricity from Brookfield. The basic plan for 2016-18 also includes plans for two additional fully underwritten solar feed-in tariffs, which are expected to amount to about 150 MW of solar electricity, as well as an additional feed-in tariff for up to 20 MW of non-solar renewable electricity. The agreement would grant rights to LIPA, which it does not need to have to decide the future of these production facilities, which is an important part of the ongoing effort to improve the overall efficiency of Long Islands electricity supply resources. The agreement contains improved conditions and rates for IAAS who purchase electricity from National Grid`s Long Island power plants. LIPA would continue to purchase Electricity from National Grid for up to 15 years, with the possibility of terminating the contract after 12 years. The agreement would include a price formula similar to that of the current PSA at rates approved by the Federal Energy Regulatory Commission. The agreement provides for new procedures to assess the feasibility of a possible repowering of the Port Jefferson, Barrett and Northport steam plants, as well as the Barrett and Holtsville combustion turbine sites. Any subsequent repowering would be based on the results of an economic study and would be subject to an electricity purchase contract acceptable to both parties, which would be subject to a separate environmental assessment and LIPA action. LIPa Long Island`s electrical system provides services to more than 1.1 million customers in Nassau and Suffolk counties and on the Rockaway Peninsula in Queens. LIPA does not own or operate any production or natural gas facilities on Long Island, although many production facilities are under contract with LIPA to meet its energy needs. [Citation required] LIPA is listed in the 2018 NYISO Gold Book as a “owner, operator and/or billing agency” for 27 different power generation units on Long Island, for a total of approximately 5,048 megawatts (MW) of rated power. [3] National Grid is pleased that we have reached an agreement with LIPA on improving the conditions associated with the current PSA,” said Tom King, Executive Director of National Grids in the United States. The agreement offers benefits to LIPA customers and the Long Island economy.

We look forward to working with LIPA and the communities we serve together to ensure the safety, security and sustainability of the Long Islands` energy future while preserving jobs on Long Island. I would also like to thank the LIPA and National Grid teams for the implementation of this innovative agreement and thank our employees at the plant for their continuous and dedicated service. The new agreement would provide Long Island with better options for modernizing and modernizing aging national power plants, redeveloping existing facilities, reducing energy costs, further improving environmental performance and removing unprofitable production from the agreement. LIPA supplies electricity to a variety of production suppliers. LIPA also has a common interest in the tenants of the Nine Mile Point II nuclear power plant. Almost all of LIPA`s electricity supply is subject to long-term electricity supply contracts (PPAs) with expiry dates from 2015 to 2034. Most of LIPA`s electricity supply is part of the following long-term contracts: the PRI is expected to be drafted in 2015.