PSEG Resources Announces Sale of Interest in Seminole Generation Station Unit 2
29 December 2005 - 8:48AM
PR Newswire (US)
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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