O&R Posts New Website Section With Tappan Substation Facts

PEARL RIVER, NY August 6, 2008 — To provide the public with efficient access to information about O&R's efforts to locate a new $8.8 million electric substation in Tappan, the Company has created a new section dedicated to facts about the project within O&R's website www.oru.com/TappanSubstation.

These new web pages contain a variety of documents, plans and maps that provide further details about O&R's system design criteria, how the system functions and the proposed substation's location relative to the topography of the site.

O&R Director – Public Affairs Tom Brizzolara said, "We are providing this information in this format as a reference tool for customers who wish to keep track of the facts during the public discussion generated by our proposal to improve electric service reliability in Tappan, Palisades and Northvale."

He added, "This website section also serves to underscore the public openness of this project. I have spoken to dozens of customers about our plans. Some of those folks favor the project, some of them do not, but almost all of the people I have spoken to have been fair-minded, serious and firm in their belief that Tappan is a community that deserves nothing but the best. I couldn't agree more."

O&R's Substation and Transmission Chief Engineer Peter McGoldrick said, "To make sure that Tappan gets the best possible service from O&R, a new substation must be constructed in a location that suits our electrical engineering and civil engineering needs. That means that O&R must build the substation close to the electric transmission lines to limit interference from the elements and other possible intrusions, near the center of the demand to most efficiently serve the load and outside the wetlands."

Brizzolara and McGoldrick addressed the Rockland County Legislature's Environmental Committee on July 23 and reported to its members on this project. Although the legislature has no decision-making or oversight responsibilities on this issue, the committee's chair, Connie Coker, and Legislator John Murphy, who represents Tappan, asked that O&R appear to brief legislators about O&R's project, including the plans for design and siting of the proposed substation. About 25 community residents also attended the meeting.

At that meeting, O&R's representatives told the legislators that 44% of Orangetown presently is served by O&R-owned substations in New Jersey. Under the Tappan substation plan, 50% of the new substation will serve electric demand load from New York and 50% will serve New Jersey. O&R predicts electric usage in this vicinity to continue to grow by 3% in New York, compared to 1.8% in New Jersey.

One of the questions from the audience at the meeting concerned the site selection process. In response to community concerns, O&R's real estate experts have been asked to continue the search to determine if other suitable properties that meet our requirements are now available. The most recent search that found the Tappan site looked at 13 properties. For a list of those properties, please go to
www.oru.com/TappanSubstation.

As part of the renewed search, Brizzolara said he had met with Northvale, NJ, Mayor John Hogan on July 21 for his suggestions on possible alternate sites in his community.

To date, no new suitable site has been found. O&R continues this search, and at the same time, continues to plan for the Oak Tree Road site. O&R has entered into a contract to purchase the Oak Tree Road property, and Oak Tree Road remains the most viable location for the substation.

Brizzolara said, "Let me say that we are doing our best to see that this process has been and remains fair, open and consistent with both the letter and the spirit of the siting process. The appropriate regulatory and permitting agencies have been fully involved from the outset and continue to be involved. In addition, we have established website access to information concerning the project, communicated with individual community members in person and by telephone and via mailings to people in the general vicinity of the site."

As part of our application before the Orangetown Planning Board, O&R's plans have been reviewed by the boards and commissions for the Town as well as the other following agencies:

Rockland County Highway Department
Rockland County Drainage Agency
Rockland County Planning Department
Rockland County Sewer District No. 1
Rockland County Health Department
Town of Orangetown — Engineering Consultant