PSEG Global to explore sale of Peruvian hydroelectric company

26 March 2007 — PSEG Global said it is exploring a potential sale of Electroandes, a hydro-electric generation and transmission company in Peru. PSEG Global, which owns 100 percent of Electroandes, has hired JP Morgan to determine interest in the asset and to act as an advisor if PSEG determined that the sale of the company was prudent.

PSEG Global said it had received “significant unsolicited interest” in the asset and decided to start a formal process to explore a possible sale of the company. Electroandes owns and operates four hydro-generation plants with total capacity of 180 MW and 437 miles of electric transmission lines. It is located in the central Andean region of Peru.

PSEG Global’s US investment includes 100 percent ownership in two 1,000 MW power plants in Texas and partial ownership of smaller plants in California and Hawaii. In South America, PSEG Global owns interests in the following distribution companies: Saesa (Chile), Chilquinta Energia (Chile) and Luz del Sur (Peru).

PSEG Global, is a unit of PSEG Energy Holdings and an indirect subsidiary of PSEG.