News 12 Long Island has learned that after months of negotiations, the Long Island Power Authority has reached agreements with KeySpan and National Grid worth $236 million.

Sources say the deal is scheduled to be announced Friday. They say LIPA would use the money to reduce emissions, add reliability safeguards and re-power some generating plants. According to the sources, National Grid has also agreed to install $100 million-worth of equipment that would reduce emissions and increase efficiency at the Northport and Port Jefferson plants. No layoffs of union workers would take place on the electric side.

LIPA may use its discretion on how to spend the remainder of the $236 million. Rate cuts or rate freezes are possibilities, but Assemblyman Marc Alessi (D-Manor Park) believes LIPA is jumping the gun.

"This should be the beginning of the discussion in terms of LIPA's presentation of their talks with National Grid," Alessi said. "This should not be the prelude to them signing a contract next week." Alessi added: "They should put some of these contracts out to bid."

The agreement requires the approval of LIPA's board, the state comptroller and state attorney general. If approved, this deal may bring the KeySpan and National Grid merger one step closer to completion.