WILMINGTON, Del., June 3, 2002 — Conectiv and Potomac Electric Power Co. (Pepco) recently announced New Jersey Administrative Law Judge Diana C. Sukovich has recommended that the state’s Board of Public Utilities (BPU) approve the merger settlement agreement that was reached in April.
The New Jersey BPU is expected to rule on the judge’s recommendation sometime in June. New Jersey is the last state that needs to approve the Pepco-Conectiv merger agreement before final approval can be sought from the U.S. Securities and Exchange Commission.
Key elements of the settlement include a $1 million contribution to be used to assist schools in Conectiv’s southern New Jersey service territory, customer service guarantees and a reduction of $30.5 million in Conectiv’s “deferral balance.” The deferral, which is unique to New Jersey, is designed to allow future recovery of certain costs associated with electric industry restructuring. The settlement was signed by a number of other key parties in New Jersey, including Staff of the New Jersey Board of Public Utilities, New Jersey Ratepayer Advocate’s office, Independent Energy Producers of New Jersey, and New Power Company, a competitive power supplier.
“We are pleased that Judge Sukovich has recommended that the merger settlement agreement be approved,” said Tom Shaw, Conectiv’s President. Shaw said, “Over time, the settlement agreement will result in rates for our New Jersey customers that will be lower than they would be without the merger. The merger will also bring reliability and service benefits for all customers across our service territory.”
The merger has received approvals from the Federal Energy Regulatory Commission, and has cleared review by Federal Trade Commission and U.S. Department of Justice. Virginia, Pennsylvania, Maryland, Delaware and the District of Columbia have all previously approved the merger.
The merger will create the largest electricity delivery company in the mid-Atlantic region with a transmission network serving 1.8 million customers in a 10,000-square-mile area. The utility operations will continue as separate operating companies. Shaw said, “Customers will continue to do business with Conectiv just as they always have, calling the same phone numbers, paying their bills the same way, and generally dealing with the same employees after the merger is approved.”
Pepco is an investor owned company that delivers electricity to more than 700,000 customers in Washington, D.C. and the Maryland suburbs. Through its family of subsidiaries, Pepco also operates in the competitive arena of telecommunications and energy products and services in the mid-Atlantic region. For more information visit the company’s web site at www.pepco.com.
Conectiv, a Fortune 500 company headquartered in Wilmington, Del., is focused on two core energy businesses. Conectiv Power Delivery provides energy 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 power pool. For more information, visit the company’s web site at www.conectiv.com.