PSEG Resources Agrees to Terminate Its Investment in the Collins Generating Facility NEWARK, N.J., March 15 /PRNewswire-FirstCall/ -- PSEG Resources, an indirect subsidiary of Public Service Enterprise Group (PSEG) and a direct subsidiary of PSEG Energy Holdings LLC today (March 15, 2004) announced an agreement with Midwest Generation LLC, an indirect subsidiary of Edison Mission Energy (EME), to terminate its lease investment in the Collins generating facility in Illinois. The lease termination is contingent on several conditions, including Midwest Generation's successfully borrowing funds to finance the repayment of lease debt of $774 million and settle its termination liability with Resources as lease equity investor. As a result, no closing date has been set. Eileen A. Moran, president of PSEG Resources, which makes energy-related investments, said that, under the proposed termination agreement, Resources would receive pre-tax proceeds of approximately $184 million of cash. "These proceeds, which include deferred taxes and accrued earnings since the lease's inception in 1999, would allow Resources to substantially recover its investment of $199 million, as of December 31, 2003," she said. "The lease termination would also reduce Resources' as well as PSEG's overall risk exposure to EME, with which it has a lease investment involving Powerton and Joliet, two other Illinois generating facilities also operated by Midwest Generation." PSEG expects to incur a loss upon termination of the Collins lease of approximately 7 cents per share of its common stock. PSEG Resources maintains a diverse portfolio comprised largely of assets related to energy infrastructure financing. Its portfolio is valued at about $3 billion. 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 estimateschange, unless otherwise required by applicable securities laws. DATASOURCE: Public Service Enterprise Group CONTACT: Leslie Cifelli of Public Service Enterprise Group, +1-973-430-3809 Web site: http://www.pseg.com/

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