Exelon Corporation Prepares to Provide Operating Services for PSEG Nuclear Plants
07 January 2005 - 5:30AM
PR Newswire (US)
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
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