Air Pollution Control Equipment Services, Emissions

KeySpan’s Spagnoli Road energy center given final green light by siting board

HICKSVILLE, N.Y., May 6, 2003 — KeySpan announced that the New York State Board on Electric Generation Siting and the Environment granted KeySpan a Certificate of Environmental Compatibility and Public Need (Article X) to construct and operate a 250-MW combined-cycle electric generating facility on Spagnoli Road.

This is the final approval required for the project to proceed with construction.

The proposed site of the new, state-of-the-art facility is a 31-acre parcel of undeveloped land on Spagnoli Road in Melville. It will be located adjacent to the Route 110 corridor, an area of great growth and power demand on Long Island. This natural gas fired generating station, projected to be on line by 2005, will produce 250 megawatts. That is enough electricity to power 250,000 homes.

“This final step has cleared the way to have a critically needed, state-of-the-art source of on island energy built and available within the next two years,” said Robert B. Catell, Chairman and CEO. “We’ve stated all along that we believe the Spagnoli Road Energy Center is the ideal source for additional generation given its combined cycle technology, proximity to LIPA’s grid and nearby access to natural gas. This plant will not only be the cleanest on Long Island, but one of the cleanest in the United States.”

The Spagnoli Road Energy Center has received the support of the Natural Resources Defense Council, U.S. Senator Chuck Schumer and several area civic and youth organizations. The plant will be designed with the latest emissions control technologies and will reduce the nitrogen oxide and sulfur dioxide from existing power plants on LI.

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. For more detailed financial and strategic information, please visit http://investor.keyspanenergy.com.