Combined Cycle

PSEG power presents proposal for 1100 MW plant

ARCADIA, Ohio, Jan. 4, 2001 (PRNewswire) — PSEG Power LLC yesterday presented at a public meeting a proposal for a 1,100 megawatt (MW) natural gas-fueled power plant to be located in Arcadia, Ohio.

The proposed plant would be a combined cycle plant and use the cleanest and most efficient technology available.

“PSEG Power is looking at a number sites in the Midwest for additional plant construction,” said Tim Young, Regional Director, Business Development for PSEG Power. “A plant of this size brings significant economic and tax benefits to the local community. We plan to work with local officials to maximize these benefits.”

The Arcadia location is one of several sites in the Midwest being considered for construction of merchant power plants by PSEG Power. Which sites will be developed depends upon a number of factors, including potential receipt of tax abatements and the obtaining of local and state approvals.

At its peak, construction of the plant would employ more than 600 people with approximately 25 to 35 full-time employees once the plant begins commercial operations in 2004. PSEG Power’s policy is to use local contractors and to hire locally whenever possible.

This is the fifth Midwest project and second in Ohio announced by PSEG Power to assist in meeting the growing power needs of the region. The five power plants would have a total of 4,020 MW.

The other plants announced are the Waterford Energy Project (Waterford Township, Ohio), the Morristown Energy Project (Morristown, Indiana), The Lawrenceberg Energy Project (Lawrenceberg, Indiana) and the Sidney Energy Project (Sidney, Illinois).

PSEG Power is a subsidiary of PSEG (NYSE: PEG). PSEG, primarily through PSEG Power, owns in excess of 11,500 megawatts in the United States with more than 7,100 MW in construction, late state development or awaiting regulatory approvals. To learn more about PSEG or PSEG Power, visit http://www.pseg.com.