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Exelon Corporation Prepares to Provide Operating Services for
PSEG Nuclear Plants
Bakken Offers to Step Aside as CNO of PSEG Nuclear
LOWER ALLOWAYS CREEK, N.J., Jan. 6 /PRNewswire-FirstCall/ -- Frank Cassidy,
president and chief operating officer of PSEG Power LLC, the parent company of
PSEG Nuclear, today announced the first steps in the process of implementing a
Nuclear Operating Services Contract the company signed on December 20, 2004
with Exelon Corporation. The contract calls for Exelon to provide management
services for plant operations at PSEG's Salem and Hope Creek Generating
Stations for a period of two years with a potential three-year renewal.
Cassidy said the contract, effective January 17th, calls for Exelon personnel
to work full time in the PSEG Nuclear organization and to implement the Exelon
Nuclear Management Model. "That working model has proven to be highly
successful across the entire Exelon nuclear fleet," said Cassidy, "and we
expect it will produce the same quality results here at our Salem/Hope Creek
plants. Exelon is recognized as one of the premier nuclear operators in the
world and is the single largest nuclear operator in the United States. The
company has an outstanding track record of consistent, safe, reliable
operation, and it will be bringing the same working formula used at its 17
nuclear plants to our three units here in New Jersey."
While the recently announced merger between PSEG and Exelon is expected to take
12 to 15 months to receive the required regulatory approvals, the nuclear
operating services contract will begin on January 17. It calls for Exelon to
provide seasoned managers to begin working at Salem/Hope Creek immediately and
for some PSEG Nuclear employees to transfer to Exelon nuclear sites.
Cassidy said, "It is understandable that Exelon would want to have its people
who are trained in their Nuclear Management Model as part of the operating
team. As a long-time co-owner, Exelon is very familiar with our operation, our
staff, and our decision-making. The transition should be as seamless as
possible."
Change in Leadership
Cassidy also announced that A. Christopher Bakken III has decided to step aside
as president of PSEG Nuclear and chief nuclear officer (CNO) also effective
January 17. "Speaking personally, this is the most painful part of the
transition," said Cassidy. "Chris Bakken has been an anchor for this company
during a very difficult period. He has exhibited what we all knew he could
deliver: great integrity and good judgment under very challenging
circumstances; an enviable ability to motivate and guide a workforce through a
period of great change; and the capacity to build trust with organized labor,
with regulatory authorities, and with public officials and community leaders
throughout the region. He is a superb talent. While he has chosen to step
aside, we will not lose his counsel and support. He will remain with PSEG
Power to assist in the transition and will be working with me as senior vice
president - Power Transition.
Bakken said, "This is a very common sense decision for me. Exelon has a proven
track record of building successful organizations. Plainly put, it deserves
the opportunity to provide its own leadership trained in the working model and
to bring in the leadership team they feel can run their system.
"I'm proud of what we've managed to accomplish at the site in the seven months
I've been CNO. I feel I have helped stabilize the safety conscious work
environment issues we faced. We've greatly improved labor -- management
relations. We have invested over $70 million and some 330,000 hours of work to
restore and upgrade many of the systems at the Hope Creek station. We've made
significant progress on our corrective and elective maintenance backlogs and
they are on track to be top quartile by the end of 2005.
"PSEG and the people in this state and in this region deserve a first-rate
nuclear operation: one that is unquestionably safe and one that is consistently
rated among the top performers in the nation. Exelon has proven it can deliver
on that promise and it will prove it again here in New Jersey."
Cassidy announced that Bill Levis, currently vice president of Mid- Atlantic
Operations for Exelon Nuclear, has been designated senior vice president and
CNO for Salem/Hope Creek. Levis brings some 21 years of experience in
commercial nuclear operations and has most recently been responsible for
executive oversight of the day-to-day operations of Limerick, Peach Bottom,
TMI-1 and Oyster Creek Stations. His broad experience includes start-up,
engineering, operations, performance recovery, and sustaining excellence. In
each of his positions over the years he has made significant overall operating
improvements in the units he has managed which have resulted in their
performing at the highest levels in their history.
Cassidy said the new team will manage daily operations but that PSEG Power will
remain the license holder and retain responsibility for management oversight
until the close of the merger and have full authority with respect to marketing
its share of the output from the facilities. Accordingly, Levis will report
directly to Cassidy.
Christopher M. Crane, senior vice president of Exelon Corporation and president
and chief nuclear officer of Exelon Nuclear will provide ongoing technical
support to Levis and will make certain that the broadly diverse and highly
respected skills of the entire Exelon nuclear organization will be made
available to Levis and to PSEG. Crane has worked in the nuclear industry for
some 25 years and was a major part of the ComEd nuclear program recovery. He
leads a fleet of 10 nuclear stations in the United States with 17 reactors
having about 17,000 MWs of capacity. It is the third largest fleet in the
world and the largest in the country.
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 From 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.
DATASOURCE: PSEG Nuclear; Exelon Corporation
CONTACT: Skip Sindoni, +1-856-339-1111, for PSEG Nuclear