KeySpan Applauds Benefits of Energy Policy Act; Measures Within Legislation Will Improve Energy Supply and Reliability in the Northeast

NEW YORK--(BUSINESS WIRE)--Aug. 8, 2005--Robert B. Catell, Chairman and CEO of KeySpan Corporation (NYSE: KSE), today praised elements of the Energy Policy Act of 2005, signed into law by President Bush today.

"We applaud several specific measures contained within The Energy Act that we feel will help our nation meet its growing demand for energy, and help KeySpan to serve its 2.6 million customers throughout the Northeast," said Mr. Catell. "It will help to ensure the supply and reliability of natural gas and electric power in a consumer-friendly and environmentally beneficial manner."

“It will help to ensure the supply and reliability of natural gas and electric power in a consumer-friendly and environmentally beneficial manner.”

Measures in the Act that are of particular interest to KeySpan include:

-- Federal judicial review of state decisions on major infrastructure projects, which will promote construction of critically-needed pipelines and LNG facilities. This could expedite the development of the Islander East pipeline, which will transport natural gas from Connecticut to Long Island, currently delayed by a single pending permit from the State of Connecticut.

-- A lowering of the depreciation rate on distribution systems from 20 to 15 years, which will encourage development of local gas pipelines.

-- Significant incentives for energy-efficiency technology and renewable fuels. New efficiency standards will promote the wise use of energy, as well as alternative forms of energy, including wind, solar, biomass, hydropower and geothermal technologies to generate electricity.

-- Increased funding from $2 billion to $5.1 billion for LIHEAP, which helps low-income utility customers to pay their energy bills.

"The Energy Act will also promote investment in energy infrastructure and diversity," said Mr. Catell. "By taking a comprehensive, strategic approach to America's energy needs now and into the future, this act is good for business, good for energy consumers and good for America."

A member of the Standard & Poor's 500 Index, KeySpan Corporation (NYSE:KSE) is the fifth largest distributor of natural gas in the United States and the largest in the Northeast, operating regulated gas utilities in New York, Massachusetts, and New Hampshire that serve 2.6 million customers. These customer-focused businesses are complemented by a portfolio of service companies that offer energy-related products, services, and solutions to homes and businesses. KeySpan is also the largest electric generator in New York State, with approximately 6,600 megawatts of generating capacity that provides power to 1.1 million customers of the Long Island Power Authority (LIPA) on Long Island and supplies approximately 25 percent of New York City's capacity needs. KeySpan also operates LIPA's transmission and distribution system under contract to LIPA. In addition to these assets, KeySpan has strategic investments in pipeline transportation, distribution, storage, and production. KeySpan has headquarters in Brooklyn, New England, and Long Island. For more information, visit KeySpan's web site at www.keyspanenergy.com.