NEWARK, N.J., Dec. 28 /PRNewswire-FirstCall/ -- PSEG Resources, an indirect subsidiary of Public Service Enterprise Group (PSEG) and a direct subsidiary of PSEG Energy Holdings LLC announced today the sale of its interest in the Seminole Generation Station Unit 2, located in Palatka, Florida to Seminole Electric Cooperative, Inc. The sale of the 659 MW coal- fired unit for $286 million resulted in an estimated $41 million after-tax gain for PSEG Resources. "We are very pleased that the monetization of this asset resulted in a meaningful gain and significant cash proceeds," said Thomas M. O'Flynn, chief financial officer of PSEG. Net proceeds of $235 million, combined with previously repatriated cash from Energy Holdings' subsidiary, PSEG Global L.L.C., will be used to redeem all of Energy Holdings' currently outstanding 7.75% Senior Notes due in 2007 totaling $309 million. O'Flynn noted that the redemption of the 2007 notes reinforces PSEG's position to maintain an appropriate capital structure at Energy Holdings. "The sale of our interest in the Seminole Unit is part of the ongoing management of our lease portfolio and, consistent with our established practice and GAAP, will be reported as part of our operating earnings," he said. "This 17 cent gain was not contemplated in the 2005 guidance of $3.15 to $3.35 per share which PSEG last affirmed in November 2005." O'Flynn also mentioned that all of the PSEG businesses have performed well during the quarter and details will be provided in the year-end earnings release scheduled for February 2, 2006. There will be no impact on the previously announced 2006 guidance of $3.45 to $3.75 per share because the loss of lease income will be offset by reduced interest expense. PSEG Resources maintains a diverse portfolio comprised largely of assets related to energy infrastructure financing. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 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 2004 Annual Reports on Form 10- K, and Quarterly Reports on Form 10-Q for the quarterly period ended September 30, 2005, of Public Service Enterprise Group Incorporated and Exelon Corporation. as well as Exelon's Form S-4 filed on February 4, 2005, as such reports and forms 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 has filed with the Securities and Exchange Commission a registration statement (File No. 333-122704) that includes the definitive joint proxy statement/prospectus that has been 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 DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED, EXELON CORPORATION AND THE PROPOSED MERGER. Investors and security holders are able to obtain these materials 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 definitive joint proxy statement/prospectus 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 and Exelon Corporation's directors and executive officers is available in preliminary joint proxy statement/prospectus contained in the above referenced registration statement. OTHER INFORMATION REGARDING THE PARTICIPANTS IN THE PROXY SOLICITATION AND A DESCRIPTION OF THEIR DIRECT AND INDIRECT INTERESTS, BY SECURITY HOLDINGS OR OTHERWISE, IS CONTAINED IN THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. DATASOURCE: PSEG CONTACT: Paul Rosengren of PSEG, +1-973-430-5911 Web site: http://www.pseg.com/

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