KeySpan to maintain aquarium fuel cell

BROOKLYN, N.Y., June 6, 2002 — KeySpan has been selected to maintain and service the PC25C™ fuel cell power plant installed by the New York Power Authority at the New York Aquarium, in Coney Island, Brooklyn.

The PC25™ is a 200-kilowatt natural-gas-powered fuel cell manufactured by UTC Fuel Cells, a unit of United Technologies Corp. Two such PC25s provide electric power for the NASDAQ sign’s home, the Durst Organization flagship at Four Times Square, also known as the Conde Nast building. The building is a 48-story office tower, located on Broadway between 42nd Street and 43rd Street, in Manhattan.

“Fuel cells are extremely reliable, efficient, and clean, and will play an increasingly large role in meeting America’s energy needs,” said Robert B. Catell, Chairman and CEO of KeySpan Corporation. “KeySpan is particularly well-positioned to take advantage of this growing market. KeySpan has compiled an impressive track record in maintaining and servicing PC25 fuel cells in the New York metropolitan area, and enjoys a terrific relationship with UTC, the principal manufacturer of commercial fuel cells in North America.”

KeySpan’s experience with fuel cell technology goes back to the 1970s. The company played a key role in the development of the PC25, hundreds of which now provide electricity and thermal energy to hospitals, schools, banks, manufacturing plants, data centers, waste water treatment plants and other facilities around the world that need clean, reliable power.

In addition to maintaining and servicing fuel cells, KeySpan also delivers natural gas to fuel cells throughout the New York metropolitan area. That load will significantly increase when KeySpan begins supplying gas to seven 200-kilowatt fuel cells — the largest fuel cell installation in the world — that will provide high-reliability power and heat to a major Verizon call-routing center and office building on Long Island.

Since 1992, KeySpan has operated a model of the PC25 fuel cell at St. Vincent’s Medical Center in Staten Island, providing electricity and heat to the hospital. To generate the same amount of electricity as a PC25 in a year, an average combustion-based power plant would have produced more than 41,000 pounds of air pollutants and four million pounds of carbon dioxide. By comparison, the new fuel cells emit only 72 pounds of pollutants, and one and a half million pounds of carbon dioxide. Fuel cells are also extremely efficient. A central power plant runs at approximately 30% electric efficiency; a fuel cell is about 38% electrically efficient. And when excess heat is recovered, a fuel cell can be as much as 85% efficient.

Two PC25C™ fuel cell power plants, installed at Sun Chemical Corporation, also in Staten Island, in 1996, have been operating for over 40,000 hours – a U.S. record.

Fuel cells convert the chemical energy of hydrogen (derived from natural gas) directly into electricity, without any combustion. As long as fuel and air are supplied, fuel cells produce electricity. In light of the uncertainty over prices and the volatility of energy supplies in recent years, many businesses are looking to fuel cells as a means of increasing power capacity and reliability at stable prices.

KeySpan is now an authorized service provider for nine PC25 natural-gas-powered fuel cells in the New York metropolitan area. In addition to the units at Four Times Square, KeySpan maintains the New York Power Authority’s (NYPA) PC25s at the New York Police Department station house in Central Park, the Yonkers Waste Water Treatment Plant, and North Central Bronx Hospital. KeySpan also provides natural gas to two PC25s in its New England service territory.

A member of the S & P 500, KeySpan Corp. is the largest distributor of natural gas in the Northeast, with 2.4 million gas customers and more than 13,000 employees. KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island’s electric system under contract with the Long Island Power Authority for its 1.1 million customers.

With headquarters in Brooklyn, Boston and Long Island, KeySpan manages a portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, a full-service energy company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy company for business customers.

KeySpan also has strategic investments in natural-gas exploration and production, pipeline transportation, distribution and storage, as well as Canadian gas processing and fiber-optic cable. For more information about the company, visit KeySpan’s Web site at: http://www.keyspanenergy.com.