PSEG Global Acquires Partner's 50% Interest in Two Generating Facilities in Texas NEWARK, N.J., July 27 /PRNewswire/ -- PSEG Global, an indirect subsidiary of Public Service Enterprise Group (PSEG), today announced that it has signed an agreement to acquire for a nominal price the 50% of Texas Independent Energy (TIE) held by its partner, a subsidiary of TECO Energy. TIE operates two 1,000-megawatt generating plants in Texas -- Guadalupe and Odessa. With this purchase, PSEG Global will own 100% of both plants. Once completed, the deal is expected to be modestly accretive to PSEG's earnings. "Becoming the sole owner of these assets enhances our opportunities and increases our flexibility in the Texas market," said Robert J. Dougherty, president of PSEG Energy Holdings. "For a very little added investment, we now have access to an additional 1,000 megawatts in ERCOT. Owning 100% of TIE will allow us to manage these plants in a manner that takes maximum advantage of opportunities provided by a rebounding Texas energy market." The sale is expected to close within 30 days, subject to certain regulatory approvals. Guadalupe is located northeast of San Antonio in Guadalupe County; and Odessa is located in Ector County. Both facilities are powered by natural gas and provide customers in Texas with cost-effective energy. The plants are among the cleanest power plants in the region, producing 90% fewer emissions per kilowatt than older plants currently running in ERCOT. The energy produced by the plants is marketed by BP Energy. PSEG Global and its parent, PSEG, a diversified energy company, are based in New Jersey. PSEG Global operates power plants and gas and electric distribution systems in the United States and internationally. FORWARD-LOOKING STATEMENT Readers are cautioned that statements contained in this press release about our and our subsidiaries' future performance, including future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance they will be achieved. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the effects of weather; the performance of generating units and transmission systems; the availability and prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in the markets for electricity and other energy-related commodities; changes in the number of participants and the risk profile of such participants in the energy marketing and trading business; the effectiveness of our risk management and internal controls systems; the effects of regulatory decisions and changes in law; changes in competition in the markets we serve; the ability to recover regulatory assets and other potential stranded costs; the outcomes of litigation and regulatory proceedings or inquiries; the timing and success of efforts to develop domestic and international power projects; conditions of the capital markets and equity markets; advances in technology; changes in accounting standards; changes in interest rates and in financial and foreign currency markets generally; the economic and political climate and growth in the areas in which we conduct our activities; and changes in corporate strategies. For further information, please refer to our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this release. In addition, any forward-looking statements included herein represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our estimates change, unless otherwise required by applicable securities laws. DATASOURCE: PSEG Global CONTACT: Leslie Cifelli for PSEG Global, +1-973-430-3809, Web site: http://www.pseg.com/

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