Hauppauge, NY-April 19, 2001- Launching a first-in-the-nation program to help Long Islanders conserve electricity while getting the most out of its overall electric supply, the Long Island Power Authority (LIPA) today announced a new program - LIPAEdge - that will allow residential and small business customers to remotely control central air conditioning systems via two-way, Internet-based technology.

Under the LIPAEdge program, some 5000 residential and small business customers will have the ability to "fine tune" the operation of their central air conditioning (CAC) systems with a 7-day programmable thermostat that will help them save 10 to 15 percent of the cost of running their CAC units this summer. The new, two-way wireless thermostat technology will also allow LIPA to remotely control the 5000 CAC units briefly up to seven peak summer demand days. That will allow LIPA to save about 5 megawatts (MW) of electricity during each control period. That's enough electricity to power about 5000 average-sized Long Island homes.

By 2002, LIPA plans to have about 30,000 residential and small businesses enrolled in LIPAEdge, which will provide about 30MW of customer reserve savings during peak summer demand periods; enough to power 30,000 average-sized LI homes. It's also the amount of electricity that can be generated by a small turbine generator.

"Using this new Internet-based, wireless technology will help stretch Long Island's electric supply all summer long," said LIPA Chairman Richard Kessel. "The LIPAEdge program will also help LIPA manage the use of our electric supply during peak summer demand periods.

"LIPAEdge is a win-win for our customers who will have the ability to conserve electricity and save money throughout the summer. LIPA will also have the ability to remotely tap customer-based power reserves to help us manage the use of our islandwide electricity resources during a heat wave," said Mr. Kessel.

LIPAEdge is just one of several programs being implemented as part of LIPA's Clean Energy Initiative, which seeks to help both residential and commercial customers conserve electricity and use it efficiently. Under a range of conservation and peak load management programs, LIPA is seeking to conserve approximately 130MW of electricity this summer to help meet peak demand needs and help ensure the availability of reliable power for Long Island.

LIPA's Clean Energy Initiative, originally conceived by Governor Pataki, seeks to spend $170 million over a five-year period to promote energy conservation and efficiency, and renewable energy technologies. The LIPAEdge program will cost approximately $14 million when fully implemented in 2002.

"The LIPAEdge program provides an excellent opportunity for LIPA and its residential and small business customers to work together to conserve electricity, lower consumer electric costs and manage our electric supply during peak periods," said Mr. Kessel.

The LIPAEdge program maximizes the operation of a participant's central air conditioning (CAC) system through the use of a 7-day programmable thermostat

manufactured by Carrier Corporation. The thermostat can be pre-programmed by the customer to a specific temperature setting, which can vary throughout the day and night. The thermostat can also be programmed to turn the CAC system on and off at pre-set times. Using the thermostat's unique Internet-based, two-way wireless capabilities the customer can remotely change the system's temperature settings and turn it on and off, which is a great way to save electricity and money while away from home.

"The LIPAEdge program represents an important step in connecting homeowners with their home through the Internet, while serving as a critical link for energy management between LIPA and its residential and small business customers," said Ken Fox, vice president and general manager, Carrier Electronics. Carrier manufacturers the ComfortChoice EMi thermostat selected for the LIPAEdge program.

LIPA will supply the $200 Carrier programmable thermostat free, underwrite the $100 installation cost, and provide volunteers with a $25 cash bonus for enrolling in the LIPAEdge program. In return, LIPA will have the ability to remotely control the volunteer's CAC systems on only seven occasions between June 1 and September 30 of each year for about 14 hours out of a total of 2900 hours. The customer retains control of their CAC system 99.5% of the time

By briefly tapping into these customer-based power reserves this summer for 30 minutes per hour between the hours of 2pm and 6pm on critical energy use days, LIPA could conserve about 5 megawatts (MW) of electricity from the 5000 participating customers. That's enough electricity to run about 5000 average-sized Long Island homes. After the brief control period, the thermostat is remotely returned to its original settings.

LIPA would tap the power reserve by temporarily adjusting the CAC's compressor while allowing the unit's fan to continue to circulate cool air. The unit's temperature could also be adjusted a few degrees as an added conservation measure. By sending signals via the Internet to a participant's CAC unit, LIPA can conserve electricity during a specific period of peak demand without significantly affecting the customer's comfort. Should a customer require the uncontrolled use of his or her

CAC system, the thermostat has an override feature that would allow the customer to reset the temperature and control the condenser.

This first-of-its-kind program offers unique customer control features that will allow LIPAEdge participants to lower their summer electric bills. Additionally, should the LIPAEdge thermostat also control the participant's heating system, the customer will also save energy and money during the winter heating season, which is an added bonus.

LIPA will launch LIPAEdge with a multi-faceted marketing campaign to sign up program participants. LIPA has already enrolled a small number of customers in the program to test the system. To date, 50 LIPAEdge thermostats have been installed and over 300 customers have registered for the program.

"I am thrilled to be a part of this program," said Suffolk homeowner Jodi Marks who participated in LIPA's field test of the programmable thermostat earlier this year. "Not only am I doing my part to help conserve electricity, but I also received a state-of-the-art programmable thermostat that will save me money during both the cooling and the heating season."

LIPA's goal is to install 25,000 residential units, 2500 commercial units and 5,000 residential pool pumps by 2002. That number of programmable units could help save over 30MW of electricity during a critical use period, in addition to conserving electricity throughout the summer, and, in some instances, during the winter.

LIPAEdge participants will know they are doing their part to both conserve electricity while using it wisely, which in turn will help ensure that Long Island's electric system will be able to meet customer needs during these times of economic growth and increasing demand.

LIPA customers interested in learning more about LIPAEdge should go to LIPA's Web site at www.lipower.org. The LIPAEdge icon located under the Residential Customers section leads to a special section that will provide program details. Customers can also sign up for the LIPAEdge program via LIPA's Web site.

Interested LIPA customers can also call LIPA's EnergyWise Infoline, 1-800-692-2626, to get more information about LIPAEdge.

The Long Island Power Authority owns the retail electric system on Long Island. LIPA provides electric service to nearly 1.1 million customers in Nassau and Suffolk Counties, and the Rockaway Peninsula in Queens. LIPA does not provide natural gas service.