PSEG Global Acquires Partner's 50% Interest in Two Generating Facilities in Texas
July 27 2004 - 3:07PM
PR Newswire (US)
PSEG Global Acquires Partner's 50% Interest in Two Generating
Facilities in Texas NEWARK, N.J., July 27 /PRNewswire/ -- PSEG
Global, an indirect subsidiary of Public Service Enterprise Group
(PSEG), today announced that it has signed an agreement to acquire
for a nominal price the 50% of Texas Independent Energy (TIE) held
by its partner, a subsidiary of TECO Energy. TIE operates two
1,000-megawatt generating plants in Texas -- Guadalupe and Odessa.
With this purchase, PSEG Global will own 100% of both plants. Once
completed, the deal is expected to be modestly accretive to PSEG's
earnings. "Becoming the sole owner of these assets enhances our
opportunities and increases our flexibility in the Texas market,"
said Robert J. Dougherty, president of PSEG Energy Holdings. "For a
very little added investment, we now have access to an additional
1,000 megawatts in ERCOT. Owning 100% of TIE will allow us to
manage these plants in a manner that takes maximum advantage of
opportunities provided by a rebounding Texas energy market." The
sale is expected to close within 30 days, subject to certain
regulatory approvals. Guadalupe is located northeast of San Antonio
in Guadalupe County; and Odessa is located in Ector County. Both
facilities are powered by natural gas and provide customers in
Texas with cost-effective energy. The plants are among the cleanest
power plants in the region, producing 90% fewer emissions per
kilowatt than older plants currently running in ERCOT. The energy
produced by the plants is marketed by BP Energy. PSEG Global and
its parent, PSEG, a diversified energy company, are based in New
Jersey. PSEG Global operates power plants and gas and electric
distribution systems in the United States and internationally.
FORWARD-LOOKING STATEMENT Readers are cautioned that statements
contained in this press release about our and our subsidiaries'
future performance, including future revenues, earnings,
strategies, prospects and all other statements that are not purely
historical, are forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform
Act of 1995. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance they will be
achieved. The results or events predicted in these statements may
differ materially from actual results or events. Factors which
could cause results or events to differ from current expectations
include, among other things: the effects of weather; the
performance of generating units and transmission systems; the
availability and prices for oil, gas, coal, nuclear fuel, capacity
and electricity; changes in the markets for electricity and other
energy-related commodities; changes in the number of participants
and the risk profile of such participants in the energy marketing
and trading business; the effectiveness of our risk management and
internal controls systems; the effects of regulatory decisions and
changes in law; changes in competition in the markets we serve; the
ability to recover regulatory assets and other potential stranded
costs; the outcomes of litigation and regulatory proceedings or
inquiries; the timing and success of efforts to develop domestic
and international power projects; conditions of the capital markets
and equity markets; advances in technology; changes in accounting
standards; changes in interest rates and in financial and foreign
currency markets generally; the economic and political climate and
growth in the areas in which we conduct our activities; and changes
in corporate strategies. For further information, please refer to
our Annual Report on Form 10-K and subsequent reports on Form 10-Q
and Form 8-K filed with the Securities and Exchange Commission.
These documents address in further detail our business, industry
issues and other factors that could cause actual results to differ
materially from those indicated in this release. In addition, any
forward-looking statements included herein represent our estimates
only as of today and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update
forward-looking statements from time to time, we specifically
disclaim any obligation to do so, even if our estimates change,
unless otherwise required by applicable securities laws.
DATASOURCE: PSEG Global CONTACT: Leslie Cifelli for PSEG Global,
+1-973-430-3809, Web site: http://www.pseg.com/
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