Pseg Power Acquisition Fact Sheet
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Investor News NYSE:PEG For further information, contact: Brian Smith, Director, Investor Relations Phone: 973-430-6564 Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568 Meg Butler, Sr. Investor Relations Analyst Phone: 973-430-6565 June 10, 2002 PSEG POWER ANNOUNCES ACQUISITION OF TWO CONNECTICUT ELECTRIC GENERATING STATIONS Transaction Includes 1,019 MW of Generating Capacity At Bridgeport Harbor, New Haven Harbor Stations And Marks Power’s Entry Into New England Market PSEG Power, one of the nation’s largest independent power producers, announced today it has reached agreement to purchase Wisvest Corporation’s Wisvest-Connecticut LLC subsidiary and the two electric generating stations it owns in Bridgeport and New Haven, CT. The transaction will add 1,019 megawatts (MW) of primarily coal- and oil-fired generating capacity to PSEG Power’s 12,000-MW operating portfolio at a purchase price of $220 million (plus adjustments for various approved expenditures, fuel, and inventory). The acquisition also marks Power’s entry into the New England wholesale market. The transaction, pending necessary federal regulatory approvals, is expected to close this fall. Wisvest and Wisvest-Connecticut LLC are subsidiaries of Wisconsin Energy Corporation. Frank Cassidy, PSEG Power president and chief operating officer, said the Wisvest-CT purchase “will strengthen our portfolio and enhance our strategic position as a major player in targeted energy markets.” Cassidy said PSEG Power “looks forward to joining the Connecticut business community. We will bring to Connecticut our strong tradition of environmental responsibility and corporate citizenship. Our intention is to operate these assets over the long-term in a manner that supports the reliability and competitiveness of energy markets in Connecticut and New England while helping the state and region achieve their environmental goals.” Ed Sondey, director of Power’s development group, said the transaction also represents “an important step in the company’s ability to find value and follow through on opportunities for growth under difficult market conditions.” The generating assets consist of baseload, intermediate, and peaking facilities. Bridgeport Harbor Station, located on the west shore of Bridgeport Harbor in Bridgeport, includes three units; a 375-MW coal-fired unit (oil backup) which is the largest coal-fired unit in Connecticut and the third-largest in New England; a 159-MW oil-fired unit; and a 19-MW combustion turbine peaking unit. A fourth unit at the site is in deactivated reserve. New Haven Harbor Station is located on the east shore of New Haven Harbor in New Haven and consists of one unit, a 466-MW oil-fired facility that also has the capability to burn natural gas at up to 40% of capacity. It is one of the most efficient oil-fired units operating in New England. Wisvest-CT currently employs 179 persons including 117 represented by Local 470-1 of the Utility Workers Union. PSEG Power will honor all existing labor agreements. Wisvest-Connecticut LLC was created in 1999 when the Bridgeport Harbor and New Haven Harbor assets were acquired from United Illuminating Company by Wisvest, Wisconsin Energy Corporation’s non-regulated subsidiary. In addition to the $220 million purchase price, the agreement calls for adjustments of up to $20 million for various approved expenditures made prior to closing as well as closing adjustments for fuel and inventory. Power anticipates financing the transaction through strong internal cash flow as well as a combination of debt and equity. The transaction is subject to various federal approvals prior to closing. PSEG Power is one of the largest independent power producers and energy trading companies in the U.S. It currently owns 12,000 MW of operating electric generating capacity and has approximately 4,000 MW of capacity under construction or advanced development. Its primary market focus is a region that extends from Maine to the Carolinas and as far west as Ohio and Indiana. The company has been recognized numerous times by government, regulatory, and environmental organizations for its environmental leadership and is the strongest electric industry advocate for a national system of more stringent power plant pollution emission standards, including mandatory carbon dioxide reductions. Power is a subsidiary of Public Service Enterprise Group Incorporated (PSEG/NYSE:PEG), a diversified energy holding company with more than $25 billion in assets. PSEG’s three main subsidiaries are Power, Public Service Electric and Gas Company (PSE&G), the oldest and largest electric and gas distribution utility in New Jersey, and PSEG Energy Holdings, a holding company for PSEG’s other nonregulated assets. PSEG has its headquarters in Newark, NJ. (For additional information, please see the accompanying fact sheet.) PSEG POWER ACQUISITION FACT SHEET S Transaction: PSEG Power is purchasing Wisvest-Connecticut LLC and the two electric generating stations it owns in Connecticut, the Bridgeport Harbor Station in Bridgeport and the New Haven Harbor Station station in New Haven. The two stations comprise 1,019 megawatts (MW) of primarily coal-and-oil-fired electric generating capacity that provide baseload, intermediate, and peaking service. Wisvest-Connecticut LLC is a subsidiary of Wisvest Corporation, a wholly owned subsidiary of Wisconsin Energy Corporation. Wisvest-Connecticut was created in 1998 when the Bridgeport Harbor and New Haven Harbor stations were acquired from United Illuminating Company. PSEG Power is one of the largest independent power producing and energy trading companies in the U.S. It is a subsidiary of Public Service Enterprise Group Incorporated, a diversified energy holding company with more than $25 billion in assets. S Terms: Purchase price is $220 million plus adjustments for capital expenditures prior to closing, fuel, and inventory. S Financing: PSEG Power will finance the acquisition through strong internal cash flow as well as a combination of debt and equity. S Closing: Power anticipates the transaction will close in the fourth quarter of 2002 following necessary federal approvals. S Significance: The transaction will add more than 1,000 MW of generating capacity to Power’s 12,000 MW operating portfolio and mark Power’s entry into the New England Power Pool (NEPOOL) market. S Assets: Bridgeport Harbor Station (BHS): BHS is a three-unit power generating facility with a net capacity of 553 MW located on Long Island Sound on the west shore of Bridgeport Harbor. A fourth unit at the site is in deactivated reserve. The three operating units are: a 375-MW coal- fired (oil backup capability) unit which is the largest in the state and the third-largest in NEPOOL; a 159 MW oil-fired unit; and a 19-MW oil-fired combustion turbine peaking unit. New Haven Harbor Station (NHS): NHS is located on Long Island Sound on the east shore of New Haven Harbor. The station consists of one unit, a 466-MW oil-fired plant that also has the capability to burn natural gas at up to 40% of capacity. The unit is one of the most efficient oil-fueled generators in NEPOOL. S Market: NEPOOL is an interconnected market that serves more than 6.5 million retail customers in Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine. NEPOOL includes approximately 25,000 MW of generating capacity and annual energy consumption of more than 189,000 Gigawatthours (Gwh). The system experienced an all-time peak demand of 24,967 MW on July 1, 2001. The wholesale market for the region is administered by the Independent System Operator-New England (ISO-NE). .