PSEG Power Seeking FERC Approval of Reliability Contracts for Two Connecticut Units Cost-of-Service Contracts Designed to Support Availability of Units Until Capacity Markets Are Implemented in New England NEWARK, N.J., Nov. 17 /PRNewswire-FirstCall/ -- PSEG Power Connecticut, a subsidiary of PSEG Power, today asked the Federal Energy Regulatory Commission (FERC) to approve cost-of-service contracts for two oil-fired Connecticut electric generating units -- the 158-megawatt (MW) Unit 2 at Bridgeport Harbor Generating Station in Bridgeport and the 455 MW New Haven Harbor plant in New Haven. The New England Independent System Operator (NE ISO) has determined that continued availability of both units is required to maintain electric system reliability in the region. PSEG Power said additional revenues from the cost-of-service contracts, usually referred to as Reliability Must Run, or "RMR" contracts, are necessary to meet ongoing operating and maintenance costs associated with keeping the units available to meet Southwest Connecticut's electric capacity requirements. PSEG Power President Frank Cassidy said, "The best and most efficient way to ensure that Connecticut and the region have adequate electric generating resources is through fully competitive wholesale markets that reflect the real value of electric generating capacity. We were disappointed when FERC delayed this summer's scheduled implementation of a Locational Installed Capacity (LICAP) market in New England. Our expectation is that RMR payments for these two units will end when capacity markets are up and running in the region served by the New England ISO." Implementation of LICAP markets is now scheduled for January, 2006. PSEG Power said that RMR payments it is seeking for both affected units would result in $66.4 million in gross revenue on an annualized basis. This amount could be reduced by sales of energy at prices higher than the cost of service rates. The company has requested that cost of service rates be put into effect on an interim basis pending FERC's review and approval. Bridgeport Harbor station's Unit 2 went into service in 1961. The New Haven Harbor Station became operational in 1975. PSEG Power is a subsidiary of Public Service Enterprise Group Incorporated (PSEG), a diversified energy holding company. PSEG's (PEG/NYSE) other primary subsidiaries are Public Service Electric and Gas Company (PSE&G), New Jersey's oldest and largest electric and gas distribution utility company, and PSEG Energy Holdings, a holding company for other unregulated businesses. PSEG and PSEG Power have their headquarters in Newark, NJ. 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 Power CONTACT: Neil Brown of PSEG, +1-973-430-6017, or +1-201-519-4323 Web site: http://www.pseg.com/

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