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No More Legal Challenges For Caithness

State's highest court denies further review of Caithness power plant

NEW YORK March 2, 2009 In a ruling that effectively precludes further legal review of the Caithness Long Island Energy Center, the New York State Court of Appeals has denied a motion for leave to appeal three earlier decisions by the Appellate Division, upholding the actions of the Town Council and the Planning Board of the Town of Brookhaven in authorizing construction of the Caithness Long Island Energy Center.

The recent ruling by the state's highest court effectively ends a series of five lawsuits spearheaded by the owners of Atlantic Point, a gated, luxury apartment complex located over a half-mile from the 350-megawatt power plant nearing completion in Yaphank, NY. In every case, the courts have ruled in favor of Caithness, clearing the way for the project to begin producing clean, low cost energy for the Long Island Power Authority's customers as early as this summer.

"Overall, the people of the Town of Brookhaven and its elected officials understood and supported the economic and environmental benefits a modern generating plant like Caithness would bring to the area," said Ross D. Ain, Senior Vice President, Caithness Long Island, LLC. "It was unfortunate that we have had to deal with a number of meritless lawsuits, but the tremendous bipartisan support we received over the last five years from the Town of Brookhaven, environmental groups, building trades and the vast majority of the community helped us overcome these hurdles and we are grateful for their steadfast support."

Mr. Ain concluded, "This is a win for Long Island's ratepayers as we can now look forward to delivering clean, efficient power to serve Long Island's needs this summer." Once operational, the Caithness Long Island Energy Center will be the cleanest, most energy-efficient and costsaving power generating facility on Long Island.

In May 2004, LIPA selected the Caithness Long Island Energy Center to be the first major baseload power plant to be constructed on Long Island in over thirty years. The Caithness project offered substantial economic and other benefits to LIPA's ratepayers as compared to the other proposals LIPA had received for on-island power projects.

About Caithness Long Island, LLC

Caithness Long Island, LLC is a subsidiary of Caithness Energy, LLC, a privately held, New
York-based independent power producer. For over 25 years, Caithness has been a pioneer in the
development of clean, reliable energy. More information can be found at: www.caithnesslongisland.com.

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Contact: Don Miller
Harrison Leifer DiMarco Public Relations
516-536-2020 or 516-330-1647

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