New electric plant passes first major test

NEW YORK, Jan. 6, 2004 -- KeySpan Corp. announced that its new 250-MW electric-generating plant at its Ravenswood facility in Long Island City, Queens, was synchronized to the Con Edison grid for the first time.

In its first major test, the unit was stabilized at a minimum generation load for two hours and then removed from service in a controlled shutdown. The plant is the first base-load electric generating-facility to be built in New York City since deregulation of the electric industry in the late 1990s.

"This is a giant step in bringing much-needed electric supplies on line in New York City," said Robert B. Catell, chairman and chief executive officer of KeySpan. "The Ravenswood expansion is the first major improvement to New York City's power supply since last year's blackout. The new plant, which is one of the cleanest and most efficient ever built, will provide New York City with critically needed electric power."

The new plant expands by 250-megawatts the capacity of KeySpan's Ravenswood electric-generating facility. The largest generator in New York City, Ravenswood can currently provide 2,160 megawatts of electric power, or about 25% of New York City's electric needs. The expansion will increase Ravenswood's electric-generation capacity by 12%, to 2,410 megawatts.

This week's test was a milestone in the expansion of Ravenswood. Originally proposed in 1999, the expansion was approved by New York State's Siting Board on Electric Generation and the Environment in 2001. Construction began in 2002. The plant's official launch is expected in March 2004.

The expansion of Ravenswood is consistent with KeySpan's strategy of growing its core electric business and providing additional growth and earnings for its shareholders. KeySpan continues to seek opportunities to develop new generating capacity in the Northeast, and is currently seeking approvals to build two electric plants on Long Island.

A member of the Standard & Poor's 500 Index, KeySpan Corporation (NYSE:KSE - News) is the largest distributor of natural gas in the Northeast with 2.5 million customers, operating regulated natural gas utilities in New York, Massachusetts and New Hampshire under the KeySpan Energy Delivery service company.

This customer focused business is complemented by the Energy Services business which offers a portfolio of energy-related products, services and solutions to homes and businesses under the KeySpan Home Energy Services and KeySpan Business Solutions companies. KeySpan is also the largest investor owned electric generator in New York State. We own approximately 6,400 Mw of generating capacity, which provides power to 1.1 million LIPA customers on Long Island and supplies 25% of New York City's capacity needs.

In addition to these assets, KeySpan has strategic investments in natural gas exploration, production, pipeline transportation, distribution and storage, and Canadian gas processing. KeySpan has headquarters in Brooklyn, Boston and Long Island and 12,000 employees. For more detailed financial and strategic information, please visit our Investor Relations web page at

Sponsored by FLSmidth

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