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CAITHNESS LI ENERGY CENTER MARKS SECOND SUCCESSFUL YEAR OF OPERATION

LongIsland.com

Yaphank power plant produced more energy in 2010 than other units, saving tens of millions of dollars in fuel costs while being the cleanest and most water conserving power plant serving LI

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YAPHANK, NY - August 15, 2011 - The Caithness Long Island Energy Center (Caithness) generated nearly twice as much electricity in 2010 than any other electric generating unit on Long Island while emitting substantially less emissions than allowed under its environmental permits. During its first full calendar year of operations, the plant generated over 19% of all the electricity produced on Long Island for the Long Island Power Authority and was available over 98% of the time to serve LIPA's customers.

These and other highlights of its operations were announced by Caithness Long Island, LLC, the developer and owner of the Yaphank-based generating plant, in marking the second anniversary of Long Island's newest power generating facility. The first major base load plant to be built on Long Island in over 35 years, Caithness started commercial operation on August 1, 2009.

"We are pleased to report that during its first two years of operation, the Caithness plant has been providing LIPA and its ratepayers with safe, reliable power, produced in a highly efficient and cost-effective operation," said Ross D. Ain, President of Caithness Long Island, LLC. "In addition, the plant is the cleanest and most water conserving power plant on Long Island."

Some of the significant highlights of the plant's operations during 2010 were:

Caithness produced more energy in 2010 than any other generating unit on Long Island, 19.4% of all the energy generated by units on Long Island under contract to LIPA.
The plant saved LIPA's ratepayers tens of millions of dollars in fuel and other costs in 2010 in replacing generation at older, less efficient plants on Long Island.
Caithness's air emissions have been less than half of the amount allowed by its air permit which itself is one of the strictest for any power plant operating in New York State.
Caithness is very conserving of Long Island's precious water resource - consuming an average of approximately 22 gallons per minute of water during 2010 while providing almost 10% of all the electricity consumed on Long Island. Other base load power plants serving Long Island utilize substantially more water to produce electricity and some cause substantial harm to aquatic resources using once through cooling systems drawing water from the Long Island Sound or other local bodies of water.

Performance for the Caithness plant is on track for similar results in 2011.

"We at Caithness continue to strive to provide the best service we can to LIPA and its ratepayers while upholding our commitment to be a good environmental steward and good corporate citizen," continued Mr. Ain

This past June the company once again distributed $25,000 in scholarships to graduating seniors at the Longwood, Bellport and Patchogue-Medford High Schools, continuing a practice that began even before Caithness started commercial operations. Since its inception, the Caithness Scholarship program has distributed over $150,000 to 111 students interested in engineering, science or the environment to assist in their education. Furthering its commitment to education, Caithness also has internship and job shadowing programs at the Yaphank plant. These programs are available to students of those same high schools to teach them about careers in energy. Caithness also supports a number of other charities and community activities in the Town of Brookhaven and on Long Island.

Recognized as an essential addition to the infrastructure of Long Island providing power to help fuel Long Island's economic growth, the Caithness Long Island Energy Center was recently honored with a "Smart Growth" Award in Clean Energy by Vision Long Island, the region's leading environmental organization focusing on smart growth .

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.