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FOR IMMEDIATE RELEASE
[CONECTIV LOGO]
January 4, 2001
Media Contact:
Tim Brown (302) 283-5803
Investor Contact:
Bob Marshall (302) 429-3114
CONECTIV SUBSIDIARY COMPLETES SALE OF NUCLEAR INTERESTS
TO PSEG NUCLEAR AND PECO ENERGY
Wilmington, Delaware - Conectiv (NYSE:CIV, CIVA), a leading Mid
Atlantic energy provider, today announced that its wholly owned subsidiary,
Delmarva Power & Light Company (Delmarva), had completed the sale of its
ownership interests in two nuclear plants to PSEG Nuclear LLC (PSEG) and PECO
Energy Company (PECO). The ownership interests were sold for approximately $9.2
million, excluding reimbursement of estimated fuel inventory, subject to
adjustment. As a result of the sale, the following interests in nuclear
generation assets, comprising all of Delmarva's nuclear interests, were
transferred:
o A 7.51-percent interest (164 megawatts) in the Peach Bottom
Atomic Power Station Units 2 and 3 (Peach Bottom) was sold in
equal shares to co-owners PSEG and PECO, each of which, prior
to the sale, owned about 43% of Peach Bottom. PECO is the
operator of that facility.
o A 7.41-percent interest (167 megawatts) in the Salem Nuclear
Generation Station Units 1 and 2 (Salem) was sold to PSEG
Nuclear, an indirect subsidiary of Public Service Enterprise
Group Incorporated. PSEG Nuclear is the operator of Salem and,
prior to the sale, owned about 43% of that facility.
PSEG Nuclear and PECO have also assumed full responsibility for the
ultimate decommissioning of Delmarva's interests in Peach Bottom and Salem.
Conectiv President and Chief Operating Officer Thomas Shaw said the
sale is consistent with the company's strategy of focusing on the "mid-merit"
generation market within the PJM power pool. Shaw said, "At the same time we are
selling baseload nuclear power plants that do not fit our strategy, we are
building new, fast-response generation units that will meet the region's need
for power. By focusing on the area where we have a competitive advantage, we can
drive growth and value for our shareholders."
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Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is focused on
two core energy businesses. Conectiv Power Delivery provides safe, reliable, and
affordable energy service to more than one million customers in New Jersey,
Delaware, Maryland, and Virginia. Conectiv Energy uses a sophisticated
power-trading unit to optimize the value of a growing portfolio of "mid-merit"
power plants that can start and stop quickly in response to changes in the
demand for power within the PJM [Pennsylvania-New Jersey-Maryland] power pool.
