PSEG Nuclear Responds to Nuclear Regulatory Commission Announcement Regarding Hope Creek Generating Station LOWER ALLOWAYS CREEK, N.J., Jan. 10 /PRNewswire-FirstCall/ -- PSEG Nuclear today issued a statement in response to a letter released by the Nuclear Regulatory Commission in advance of its public meeting slated for Wednesday evening, January 12th. The statement from Chris Bakken is as follows: "We are pleased the NRC concurs with our assessment that Hope Creek is safe to operate without replacing the 'B' recirculation pump shaft until the next refueling outage. Based on our conversations with the NRC, we now expect to receive a confirmatory action letter (CAL) from the NRC consistent with the commitment letter we delivered to them yesterday. Those commitments include setting up a vibration-monitoring program to continuously monitor the recirculation pump, taking specific actions to be based on the vibration data, and making a commitment to change out the pump shaft during the next refueling outage or sooner if an outage of a sufficient duration occurs before the next scheduled refueling. PSEG looks forward to the public meeting with the NRC on Wednesday evening to further discuss the details of their special investigation. We anticipate restarting Hope Creek shortly after the public meeting with the NRC." PSEG also released a copy of Bakken's commitment letter to Sam Collins, Regional Administrator, NRC Region I (attached below). This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving Public Service Enterprise Group Incorporated and Exelon Corporation, including future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Such statements are based upon the current beliefs and expectations of Public Service Enterprise Group Incorporated's and Exelon Corporation's management, are subject to significant risks and uncertainties and may differ materially from actual future experience involving any one or more of such matters. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the timing of the contemplated merger and the impact of any conditions imposed by regulators in connection with their approval thereof; the failure of Public Service Enterprise Group Incorporated and Exelon Corporation stockholders to make the requisite approvals for the transaction; the risk that the businesses will not be integrated successfully; failure to quickly realize cost-savings from the transaction as a result of technical, logistical, competitive and other factors; 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. While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially. We intend the forward-looking statements to speak only as of the time first made and we do not undertake to update or revise them as more information becomes available. Additional factors that could cause Public Service Enterprise Group Incorporated's and Exelon Corporation's results to differ materially from those described in the forward-looking statements can be found in the 2003 Annual Reports on Form 10- K, and Quarterly Reports on Form 10-Q for the quarterly period ended September 30, 2004, and the current reports on Form 8-K filed on December 21, 2004, and December 20, 2004, of Public Service Enterprise Group Incorporated and Exelon Corporation, as such reports may have been amended, each filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission's website, http://www.sec.gov/. Additional Information This communication is not a solicitation of a proxy from any security holder of Public Service Enterprise Group Incorporated or Exelon Corporation. Exelon Corporation intends to file with the Securities and Exchange Commission a registration statement that will include a joint proxy statement/prospectus and other relevant documents to be mailed by Public Service Enterprise Group Incorporated and Exelon Corporation to their respective security holders in connection with the proposed merger of Public Service Enterprise Group Incorporated and Exelon Corporation. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED, EXELON CORPORATION AND THE PROPOSED MERGER. Investors and security holders will be able to obtain these materials (when they are available) and other documents filed with the Securities and Exchange Commission free of charge at the Securities and Exchange Commission's website, http://www.sec.gov/. In addition, a copy of the joint proxy statement/prospectus (when it becomes available) may be obtained free of charge from Public Service Enterprise Group Incorporated, Investor Relations, 80 Park Plaza, P.O. Box 1171, Newark, New Jersey 07101-1171, or from Exelon Corporation, Investor Relations, 10 South Dearborn Street, P.O. Box 805398, Chicago, Illinois 60680-5398. Participants in Solicitation Public Service Enterprise Group Incorporated, Exelon Corporation, their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Public Service Enterprise Group Incorporated's directors and executive officers is available in its proxy statement filed with the Securities and Exchange Commission by Public Service Enterprise Group Incorporated on March 10, 2004, and information regarding Exelon Corporation's directors and executive officers is available in its proxy statement filed with the Securities and Exchange Commission by Exelon Corporation on March 12, 2004. OTHER INFORMATION REGARDING THE PARTICIPANTS IN THE PROXY SOLICITATION AND A DESCRIPTION OF THEIR DIRECT AND INDIRECT INTERESTS, BY SECURITY HOLDINGS OR OTHERWISE, WILL BE CONTAINED IN THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION WHEN THEY BECOME AVAILABLE. (Bakken's letter to the NRC) LR-N05-0017 January 9, 2005 Mr. Samuel Collins, Regional Administrator United States Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406-1415 PSEG ACTIONS IN RESPONSE TO NRC CONCERNS REGARDING 'B' REACTOR RECIRCULATION PUMP HOPE CREEK GENERATING STATION DOCKET NO. 50-354 Reference: Telecon Mr. Chris Bakken, PSEG, and Mr. Sam Collins, USNRC January 7, 2005 Dear Mr. Collins: In response to our telephone discussions on January 7, 2005, this letter documents PSEG Nuclear LLC's (PSEG) commitments regarding the Hope Creek 'B' Reactor Recirculation Pump. 1) PSEG will implement a vibration-monitoring program to continuously monitor the 'B' Reactor Recirculation Pump's primary and secondary harmonic parameters (total amplitude, 1X and 2X amplitude, and 1X and 2X phase angle) during future operating cycles. This program shall include establishing objective criteria that demonstrate that monitored parameters are within acceptable range and developing procedures which specify the actions to be taken if the monitored parameters are outside of the specified range of the acceptance criteria. We understand that PSEG procedures HC.OP-AB.RPV-0003(Q), HC.OP-AR.ZZ-0008(Q) Attachment E-4, and HC.ER-AP.BB-0001(Z) Rev. 0, provided by PSEG letter dated January 4, 2005 meet this commitment. Further, this program will continue until an inspection of the 'B' Reactor Recirculation Pump's rotating assembly and replacement of the pump shaft have been completed. 2) PSEG will notify the NRC prior to implementing any change to the vibration monitoring and operating procedures cited above. This notification will provide sufficient time for the NRC to complete a review of the proposed changes. 3) PSEG will replace the 'B' Reactor Recirculation Pump shaft and inspect the pump's rotating assembly and pressure boundary components (such as the pump casing and cover) at the earlier of the next refueling outage (RFO13) or during an outage of sufficient duration to accomplish pump replacement. During the current refueling outage (RF012) PSEG has completed extensive work directed toward improving equipment reliability and correcting long-standing problems. Attachment 1 provides a summary listing of some of the more significant activities. Should you have any further questions please contact Christina Perino, Director-Licensing and Nuclear Safety at 856-339-1989. Very truly yours, A. Christopher Bakken, III President and Chief Nuclear Officer Attachment C Mr. D. Collins, Project Manager Salem & Hope Creek U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 08B2 11555 Rockville Pike Rockville, MD 20852 USNRC Senior Resident Inspector - HC (X24) Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering PO Box 415 Trenton, NJ 08625 Document Control Desk USNRC Washington DC 20555 Major work completed during RF12 * Completed replacement of 69 CRD Mechanism and 8 O-Ring replacements (includes Guide Tube Vacuuming of associated guide tubes). This included removal of existing CRDM Exchange Machine and replaced with new equipment * Performed overhaul and material upgrade of the "B" and "C" Emergency Diesel Generators * Inspections and valve replacements of "A" Service Water Loop, including coating repairs and installation of WEKO Seals * Replaced 14 SRV Pilot Assemblies and 9 SRV Bodies * Replaced "C" EDG Electronic Governor * Replaced "B" EDG Electronic and Mechanical Governors * Replaced "B" Reactor Recirc Pump Seal and implemented "B" Reactor Recirc Seal leakoff piping slope modification * Rebuilt TACS Accumulator Floating Roof * Repaired the "A" Control Room Chiller Labyrinth Seals * Performed Internal inspection of all 8 MSIVs * Repaired Drywell Insulation * Repaired EDG Exhaust Stacks/Leaks * Replaced 'A' & 'B' Phase Main Power Transformer * Performed Fuel Sipping of the entire core * Installed Digital EHC System * Completed Reactor Level Setpoint Setdown Modification * Implemented RX Recirc Vibration Monitoring DCP DATASOURCE: PSEG Nuclear CONTACT: Chic Cannon of PSEG Nuclear, +1-856-339-1111 Web site: http://www.pseg.com/

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