News from New York State Public Service Commission

For more information contact: James Denn, 518-474-7080

Commission OKs Extension of KeySpan Business Incentive Plan

ALBANY, NY (09/19/2007; 1541)(readMedia)-- The New York State Public Service Commission (Commission) today approved a one-year extension of the business incentive rate program for KeySpan Gas East Corp., doing business as KeySpan Energy Delivery of Long Island. The program is designed to help attract retail business to Long Island by discounting the delivery rate for eligible customers.

“Business incentive programs such as KeySpan Long Island’s are an important economic development tool for the region because they help stimulate the growth of new companies,” said Commission Chairwoman Patricia L. Acampora. “KeySpan Long Island’s business incentive program has been in existence for eight years and it has claimed success. It would be beneficial to continue the program for another year.”

The business incentive plan is designed to reduce natural gas costs for new businesses during their first 10 years in business. To qualify for the incentive, customers must receive an economic development zone, industrial development agency, Small Business Administration, or other documented loan or grant for a capital improvement administered by the State or a local municipality, and the customers must occupy a new or vacant premise or increase their existing consumption by at least 15 percent. Customers installing energy efficiency devices that reduce their consumption below the 15 percent threshold would be permitted to remain in the program.

The rate is also available to customers who graduate from the New York State Incubator Program. The companies that qualify for the incubator program are emerging businesses involved in the application of technological research and or development of new products related to technological research.

In addition to approving the program’s continuation, the Commission ordered KeySpan Long Island to conduct further studies to determine if the discount provided on the delivery rate is producing enough increased margins and is helping to attract and retain enough businesses.

The Commission’s decision today in Case 07-G-0676, when issued, will be available on the Commission’s www.dps.state.ny.us Web site by accessing the homepage section’s Files Room. Many libraries offer free Internet access. Commission decisions can also be obtained from the Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).

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