* § 1020-a. Declaration of legislative findings and declarations. The
legislature hereby finds and declares that:

Constantly escalating and excessive costs of electricity in the
counties of Suffolk and Nassau and that portion of the county of Queens
served by the Long Island lighting company (hereinafter referred to as
the "service area") pose a serious threat to the economic well-being,
health and safety of the residents of and the commerce and industry in
the service area.

There is a lack of confidence that the needs of the residents and of
commerce and industry in the service area for electricity can be
supplied in a reliable, efficient and economic manner by the Long Island
lighting company (hereinafter referred to as "LILCO").

Such excessive costs and lack of confidence have deterred commerce and
industry from locating in the service area and have caused existing
commerce and industry to consider seriously moving out of the service
area.

The decisions by LILCO to commence construction of the Shoreham
nuclear power plant and thereafter to continue such construction were
imprudent.

The investment of LILCO in the Shoreham nuclear power plant has
created significant rate increases, straining the economic capabilities
of ratepayers in the service area, and likely will require further
substantial rate increases if such plant is placed in service.

It is uncertain whether the Shoreham nuclear plant ever will go into
commercial service, or if it does whether its reliability, cost of
construction, operation and maintenance will be such as to provide
sufficient, reliable and economic electric service to ratepayers in the
service area. The very substantial financial strain of the investment in
the Shoreham nuclear plant has required LILCO to suspend dividends on
its common and preferred stock, severely threatening the continued
economic viability of LILCO.

For all the above reasons, a situation threatening the economy, health
and safety exists in the service area.

Dealing with such a situation in an effective manner, assuring the
provision of an adequate supply of electricity in a reliable, efficient
and economic manner, and retaining existing commerce and industry in and
attracting new commerce and industry to the service area, in which a
substantial portion of the state's population resides and which
encompasses a substantial portion of the state's commerce and industry,
are hereby expressly determined to be matters of state concern within
the meaning of paragraph three of subdivision (a) of section three of
article nine of the state constitution.

Such matters of state concern best can be dealt with by replacing such
investor owned utility with a publicly owned power authority. Such an
authority can best accomplish the purposes and objectives of this title
by implementing, if it then appears appropriate, the results of
negotiations between the state and LILCO. In such circumstances, such an
authority will provide safe and adequate service at rates which will be
lower than the rates which would otherwise result and will facilitate
the shifting of investment into more beneficial energy demand/energy
supply management alternatives, realizing savings for the ratepayers and
taxpayers in the service area and otherwise restoring the confidence and
protecting the interests of ratepayers and the economy in the service
area. Moreover, in such circumstances the replacement of such investor
owned utilities by such an authority will result in an improved system
and reduction of future costs and a safer, more efficient, reliable and
economical supply of electric energy. The legislature further finds that
such an authority shall utilize to the fullest extent practicable, all
economical means of conservation, and technologies that rely on
renewable energy resources, cogeneration and improvements in energy
efficiency which will benefit the interests of the ratepayers of the
service area.

* NB There are 2 § 1020-a's