Energy Efficiency, Outage Management, T&D

K. Hovnanian announces partnership with PSE&G

UPPER FREEHOLD, N.J., Nov. 14, 2001 — K. Hovnanian Companies today said its future homes would meet voluntary federal standards that cut natural gas and electricity use by at least one-third.

The Edison-based company will work with Public Service Electric and Gas Company (PSE&G) to assure that construction techniques, building materials and appliances meet NJ ENERGY STAR Homes program criteria. K. Hovnanian becomes the first major builder in New Jersey to make such a sweeping commitment.

The NJ ENERGY STAR Homes program is a partnership between the U.S. Environmental Protection Agency (EPA) and builders to encourage energy efficiency. The program promotes the installation of high-efficiency heating and cooling equipment, water heaters and appliances, in conjunction with advanced building techniques and materials. PSE&G certifies that completed homes meet NJ ENERGY STAR Homes standards.

According to the EPA, consumers who purchase a NJ ENERGY STAR home save at least 30 percent on their utility bills compared to the cost of heating and cooling a typical home in New Jersey. In addition, the EPA cites improved comfort, indoor air quality and strong resale value as added benefits of NJ ENERGY STAR homes.

“For 40 years, K. Hovnanian has continually sought ways to build more value into the homes we build,” said Joe Riggs, regional president of K. Hovnanian. “The cost of energy is a major concern for homeowners, and the NJ ENERGY STAR Homes program is a good way to demonstrate that our homes are as energy-efficient as possible.”

PSE&G, New Jersey’s largest electric and gas utility, has offered the NJ ENERGY STAR Homes program in its service territory since 1998. The program provides builders with the planning assistance and knowledge to construct homes to the highest standards of energy efficiency. In 2001, the program expanded statewide to be offered by all of New Jersey’s electric and gas utilities. K. Hovnanian will work with each in their service areas.

“The partnership between K. Hovnanian and PSE&G demonstrates the ability of two companies to work together to affect change that benefits the residents of New Jersey,” said Patrick Downes, vice president of delivery operations support for PSE&G. “K. Hovnanian has recognized that something that is good for the environment can also be a sound business decision and we applaud them for their leadership and commitment to the NJ ENERGY STAR Homes program”.

The companies made the joint announcement at K. Hovnanian’s Four Seasons® at Upper Freehold, an active-adult community that already is being constructed to NJ ENERGY STAR Homes program standards.

“Working with PSE&G and our trade partners, we modified our construction techniques, increasing energy savings potential while maintaining the quality, flexibility and efficiency that always have been part of our home-building process,” said Riggs. “Because of our economies of scale, we’re able to extend the NJ ENERGY STAR Homes program to communities that now are being planned without adding to the price of our homes.”

Riggs said the announcement applies to K. Hovnanian homes now being designed for communities in New Jersey. He added that all current K. Hovnanian homes include many of the advanced building materials and techniques used to reach NJ ENERGY STAR Homes standards.

“We know a great deal about building energy efficiency into our homes,” said Riggs. “Even homes that don’t have the NJ ENERGY STAR Homes certification are built with materials that are energy-efficient. An example is the low-e energy-efficient glass that’s used in most K. Hovnanian homes.”

Another benefit of buying a K. Hovnanian NJ ENERGY STAR home is a special mortgage program being offered by K. Hovnanian Mortgage Co. The mortgage program includes no document preparation fees, stretched qualifying ratios of up to 5 percent and special rate locks for some programs.

“These are the homes of the future,” said Riggs. “Working with PSE&G, we’ve been able to combine quality and energy efficiency. By adding energy-efficient features people say they want in their homes, and building those homes in beautiful, well-designed communities, we can deliver just the sort of homes people want.”

With annual revenues exceeding $1.6 billion, K. Hovnanian Companies ranks among the top homebuilders in the United States. More information is available at its Web site, www.khov.com.

Public Service Electric and Gas Company (PSE&G) is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving 3.5 million customers. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG), a diversified energy and energy services company. The PSEG website address is http://www.pseg.com.