Select Energy wins New Jersey auction bid to supply 2,100 MW of electricity

BERLIN, Conn., Feb. 20, 2002 — Select Energy announced today that it will supply 2,100 megawatts of peak-load power to three of New Jersey’s four electric distribution companies beginning August 1, 2002.

The one-year power agreements were the result of an online auction and bidding process involving a total of approximately 18,000 megawatts to serve New Jersey’s Basic Generation Service. Revenues for Select Energy, a subsidiary of Northeast Utilities, are estimated at roughly $475 million.

Frank P. Sabatino, senior vice president of power marketing, led Select Energy’s efforts in the auction’s 73 rounds of bidding from Monday, February 4, through Wednesday, February 13. “Our team took a comprehensive, competitively-priced approach to meet the challenges of New Jersey’s innovative process for securing its wholesale electric supply,” said Sabatino. Over 20 qualified bidders participated in the auction and a total of 15 companies submitted winning bids, according to the New Jersey Board of Public Utilities.

Select Energy won supply bids serving Public Service Electric and Gas Company, GPU Energy, and Conectiv Power. Last month Select Energy announced it is supplying 350 megawatts of Maine’s standard offer service, bringing the company’s wholesale electric business to approximately 4,000 megawatts in New England.

“We are strategically expanding our customer base throughout the 11 Northeastern states from Maine to Maryland,” said Select Energy president William W. Schivley. “Our outcome in New Jersey’s competitive auction — about 12 per cent — conceivably makes us one of the largest wholesale suppliers in that state, and significantly increases our presence in the Pennsylvania/ New Jersey/Maryland (PJM) region,” Schivley added. Market share figures for the other New Jersey auction winners were not available.

Additional information can be found on the New Jersey Board of Public Utilities’ Web site at www.bpu.state.nj.us.

Select Energy provides electricity, natural gas and energy services to business and institutional customers throughout the northeastern United States. Select Energy’s 2001 revenues totaled approximately $3 billion. More information about the company is available online at www.selectenergy.com.

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