NEWARK, N.J., July 24, 2001 — PSEG Power said today it is considering the construction of a third natural gas-fired, combined cycle power plant at its Bergen Generating Station in Ridgefield, NJ, a project that would continue the redevelopment and expansion of existing generating sites.

The additional capacity at Bergen, 550 megawatts (MW) would be slated for operation in 2004 and bring the total amount of new generation under construction or development in New Jersey and New York to more than 3,200 MW of clean, efficient, state-of-the-art capacity. Other projects include a 1,186-MW combined cycle plant under construction at Linden (NJ) Generating Station; a 550-MW combined cycle plant under construction also at Bergen; a 175-MW simple cycle peaking unit nearing completion at Kearny (NJ) Generating Station; and a 750-MW combined cycle plant under development at the site of the existing Albany Steam Station in Bethlehem, NY. These projects also will result in the retirement of almost 900 megawatts of older, less efficient, capacity.

PSEG Power also said it is studying the possibility of constructing and owning a generator lead that would transmit power from the Bergen station in New Jersey to a Consolidated Edison substation on West 49th Street in New York. The generator lead would allow the company to provide much-needed electric energy to the city by 2003. PSEG Power is in discussions with potential buyers for this energy.

Tom Smith, PSEG Power executive vice president - development and operations, said the more than 3,200 MW of new electric generating capacity under construction and development "will increase power supply and enhance electric system reliability in New Jersey, the Pennsylvania-New Jersey-Maryland (PJM) Independent System Operator service territory, and throughout the entire region.

"Power is a leader in demonstrating the environmental, energy, and economic benefits of using existing sites as locations for new, efficient, and clean electric generating capacity," Smith continued. "Most of the capacity additions will be used to improve PSEG Power's ability to meet its commitments to New Jersey and PJM. The additional capacity also will enable the company to expand its presence in the New York market in a manner that will enhance electric system reliability and support the overall regional economy."

Power's investment in previously announced new regional electric generating capacity is approximately $1.4 billion.

In addition to projects under construction or development in markets served by PJM and the NY Independent System Operator (ISO), Power last month started construction on two gas-fired combined cycle projects in the Midwest, an 850-MW plant at Waterford, Ohio, and a 1,150-MW facility at Lawrenceburg, Indiana.

Power currently has more than 17,000 megawatts of electric generating capacity in operation, construction, or advanced development. It operates the 15th largest (by volume) energy trading business in the U.S.

Power is a subsidiary of Public Service Enterprise Group Incorporated (NYSE: PEG - news), a diversified energy holding company with headquarters in Newark, NJ.