News Release
April 04, 2002


BOSTON and NEW YORK – The Federal Energy Regulatory Commission (FERC) issued a favorable Draft Environmental Impact Statement (DEIS) to Islander East Pipeline Co. L.L.C. for its proposed interstate natural gas pipeline in Connecticut and Long Island, N.Y.

Islander East is proposing to construct approximately 50 miles of interstate natural gas pipeline to help meet the northeast region’s growing demand for the cleaner-burning fuel.


Islander East is an equally owned, limited liability company formed between the subsidiaries of KeySpan Corp. and Duke Energy. In conjunction with this FERC filing, a companion project filed by Algonquin Gas Transmission Co., a unit of Duke Energy, received a positive DEIS for its plans to upgrade 13 miles of existing pipeline and construct a new compressor station in Cheshire, Conn.


In the report, FERC staff concludes that “with the use of Islander East’s proposed mitigation and adoption of our recommended mitigation measures, construction and operation of the proposed facilities would have limited adverse environmental impact.”  


“Islander East is committed to constructing and operating the pipeline in a safe and   environmentally responsible manner,” said Robert B. Evans, president and chief executive officer of Duke Energy Gas Transmission. “We appreciate FERC staff’s diligent efforts in developing this DEIS and in recognizing that we will adhere to strict regulatory standards and our own stringent monitoring and inspection programs. We will continue to work with FERC, regulatory agencies, landowners, public officials, environmental organizations and other interested parties to ensure the project minimizes impacts to the communities and the environment.”


Together the Islander East and Algonquin projects are expected to provide 260,000 dekatherms per day of natural gas, including supplies from major new supply basins located off the coast of eastern Canada. The introduction of a new pipeline from New England to Long Island ensures security and reliability of natural gas to consumers in the region. Islander East is responding to the region’s significant energy needs by delivering natural gas to where it is needed and providing access to an entirely new supply basin, increasing competition and offering more fuel choice to the market.


“Islander East is continuing to move forward to meet the growing demand for new energy in Connecticut and New York,” said Robert B. Catell, chairman and chief executive officer of KeySpan. “Through the efficient and cost-effective delivery of eastern Canadian natural gas to the region, Islander East will enhance the security of supply for our residential and industrial customers. Islander East also will provide the fuel necessary to power new and existing gas-fired electric generating stations increasing competition throughout the energy market.” 


In December, FERC issued a preliminary review of the Islander East and Algonquin projects determining that the proposals will fill an immediate market need, by serving expected growth in the Northeast market area. The proposed Islander East mainline pipeline will extend from Connecticut across Long Island Sound to Wading River, N.Y., with proposed connections to KeySpan’s Long Island delivery system. Both projects are expected to be in service in 2003.


A member of the S&P 500, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.5 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 also 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:


Duke Energy Gas Transmission is a North American leader in developing energy infrastructure and connecting major natural gas supply basins to growing markets. The company’s natural gas operations include more than 18,900 miles of interstate transmission pipeline and 240 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at


Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses   -- generating revenues of more than $59 billion in 2001. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at:

Contact: John Sheridan, Duke Energy
Phone: 617/560-1444
24 Hour Phone: 704/382-8333
Contact: Andrea Staub, KeySpan
Phone: 516/545-5052; 516/824-1241 pager
24 Hour Phone: n/a
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