WATERFORD, Ohio, June 20, 2001 — PSEG Power Chief Operating Officer, E. James Ferland, joined Ohio Governor Bob Taft today to announce the construction of a $300 million combined cycle natural gas electric generation plant in Waterford Township (Washington County).

The Waterford plant is expected to generate $12 million in new tax revenue over ten years, with $8.4 million targeted for the Wolf Creek Local School system. Approximately 400 new construction jobs will be created within 18 months. Following completion of the construction project, the facility is expected to employ 25-35 full time workers.

"We are pleased to be in Ohio building a cutting edge electric generating plant at a time when the power industry is entering a consumer-driven era," said Ferland. "We look forward to a mutually advantageous partnership with our new neighbors in Waterford Township, the state of Ohio and Ohio's business community."

Through the Ohio Department of Development, the state of Ohio has offered PSEG the following incentives for the project: A 60 percent Job Creation Tax Credit for a 10-year term; a $225,000 Roadwork Development (629) grant; and up to $25,000 in Ohio Investment in Training Program grant funds.

"I am pleased PSEG has committed to establishing operations in the state of Ohio," Governor Taft said. "While other states continue to face a power crisis, the PSEG project will enhance Ohio's energy infrastructure and position the state for long-term economic success."

The announcement kicked off a community-wide, day-long celebration held at Waterford High School entitled, "A Celebration of Growing Together." The event featured community leaders and residents, elected officials, Wolf Creek Local School representatives and PSEG officials.

Students from the Waterford Industrial Technology Classes constructed a large replica of the state of Ohio for the event. Waterford Science Olympiad students joined Mr. Ferland and Governor Taft in flipping the switch to light up the Ohio replica.

PSEG Power has entered into a partnership with Wolf Creek Local School system, committing up to $1 million for new computer equipment and other capital improvements.

PSEG Power, a subsidiary of New Jersey-based Public Service Enterprise Group (PSEG) (NYSE: PEG - news), is a worldwide leader in energy production and delivery. The company's combined cycle gas plants generate electricity by burning natural gas in a turbine and then using the heat from that turbine to create steam which powers a second turbine.

SOURCE: PSEG Power