Air Pollution Control Equipment Services

Bethlehem Energy Center Article X application deemed in compliance with state regulations

NEWARK, N.J., Sept. 5, 2001 — The New York State Board on Electric Generation Siting and the Environment has determined that PSEG Power New York’s (PSEGNY) “Article X” application for the Bethlehem Energy Center is compliance with state regulations, an action that represents a major milestone for the 750-megawatt project.

Public hearings on the project will now be scheduled for next month in line with the Siting Board reaching a final project certification decision within 12 months.

In related action, the state Department of Environmental Conservation has issued draft air and water permits for the project. PSEGNY filed the water permit application in March, the air permit application in May, and the Article X application supplement in July.

PSEGNY is proposing to replace the existing 400-MW Albany Steam Station located three miles south of Albany in Bethlehem, NY, with the $400 million BEC, a state-of-the-art natural gas-fired, combined cycle generating facility that will almost double the energy output at the site while dramatically reducing air and water environmental impact. The project is the first in the Hudson Valley to respond to the state’s need for additional electric energy supplies by redeveloping an existing generation site, retiring old generation, and replacing the old equipment with new, clean, efficient technology.

PSEGNY acquired the existing station from Niagara Mohawk Power Corporation in May, 2000. The Article X application supplement submitted in July completed an original application filed by Niagara Mohawk in 1998 and reflected PSEGNY’s update and improvement over the original plan.

The BEC project would result in replacing Albany Steam Station’s 1950’s technology with the cleanest and most efficient electric generation technology available. BEC will be among the cleanest power plants in New York, reducing emission rates of nitrogen oxide and sulfur dioxide by 97-98% and use of Hudson River water for cooling by 98-99%. Redevelopment of the site will also make more efficient use of resources and minimize environmental impact through use of existing electric transmission and fuel supply infrastructure; provide the region with significant economic benefits and continued employment opportunities; and increase competition in wholesale electricity markets and improve electric system reliability by increasing generating capacity and fuel diversity.

Russell S. Arlotta, PSEGNY director-development, said PSEGNY “will work with the Siting Board and the state agencies to facilitate a thorough review of the application and an expeditious certification of the BEC project.”

The Article X application for BEC is available to the public at the Bethlehem Public Library, 451 Delaware Avenue, Delmar. NY; the East Greenbush Community Library, 225 Columbia Turnpike, East Greenbush, NY; and the Troy Public Library, 100 Second Street, Troy, NY.

In addition, the application executive summary is posted on the BEC project website: WWW.BETHLEHEMENERGYCENTER.COM .

PSEGNY is a subsidiary of PSEG Power, one of the nation’s largest independent power producers and energy trading companies. PSEG Power has more than 17,000 MW of electric generation in operation, construction, or advanced development. PSEG Power is a subsidiary of Public Service Enterprise Group Incorporated (NYSE: PEG – news), a diversified energy holding company with headquarters in Newark, NJ.