News Release
May 07, 2004

ISLANDER EAST RECEIVES FAVORABLE DECISION FROM COMMERCE DEPARTMENT

BOSTON and NEW YORK – Islander East Pipeline Company L.L.C. (Islander East) commended the U.S. Department of Commerce’s decision which allows the issuance of other federal licenses and permits for its interstate natural gas pipeline project in New York and Connecticut. The decision issued by Secretary Donald L. Evans overrides Connecticut’s objection under the Coastal Zone Management Act (CZMA).

Responding to an appeal by Islander East, Secretary Evans determined that the project is consistent with the objectives of the CZMA.  His decision noted that Islander East “furthers the national interest in a significant and substantial manner; the national interest furthered by the project outweighs the project’s adverse coastal effects (considered separately or cumulatively); and there is no reasonable alternative available for the project.”

“Secretary Evans has reviewed the extensive engineering and environmental studies and has balanced coastal zone impacts with the region’s need for natural gas infrastructure,” said Tom O’Connor, president of Duke Energy Gas Transmission.  “We appreciate the secretary’s decision which supports the project approval issued by the Federal Energy Regulatory Commission (FERC). Throughout the regulatory process, we have worked collaboratively with federal and state officials to ensure that Islander East will be constructed and operated in an environmentally responsible manner. As the secretary noted, we have demonstrated that Islander East will have minimal and temporary impact on the environment.”

“KeySpan is thrilled that Secretary Evans has overridden Connecticut’s objection,” said Robert B. Catell, KeySpan Corp. chairman and CEO. “This is the second time a federal agency has determined that this project is critical to the Northeast. There are many benefits to this pipeline and the findings by the Commerce Department echo what we have been saying for some time. Not only will Islander East help meet the growing energy needs for residential and industrial customers, but by enhancing the pipeline infrastructure the security and reliability of our natural gas supply will be greatly improved.”

Previously, FERC issued a certificate of public convenience and necessity authorizing the construction, operation and maintenance of approximately 50 miles of pipeline facilities for the project.

Islander East will deliver up to 260,000 dekatherms per day of much needed natural gas to markets on Long Island and in New York City where demand is growing at a greater rate than other regions of the country. Additionally, Islander East will enhance the pipeline infrastructure in Connecticut, providing consumers access to a cost-effective and efficient natural gas transportation network.

“We recognize the urgent need for additional natural gas supply in New York and Connecticut and know that Islander East will play an integral role in helping to meet the region’s energy demand,” said O’Connor. “We will continue our efforts to move forward with this important project.”

Islander East is an equally owned, limited-liability company formed between the subsidiaries of KeySpan Corp. and Duke Energy. 

Contact: Andrea Staub, KeySpan
Phone: 516/545-5052
24-Hour Phone: n/a
e-mail: n/a
Contact: John Sheridan, Duke Energy
Phone: 617/560-1444
24-Hour Phone: 704/382-8333
e-mail: jpsheridan@duke-energy.com