Press Release

N.J. Ratepayer Advocate Disappointed With Energy Commission’s Approval for Mega Merger Between PSE&G and Exelon

Newark, N.J.-- Ratepayer Advocate Seema M. Singh today said she was disappointed about the decision made by the Federal Energy Regulatory Commission (FERC) to conditionally approve the merger between Public Service Enterprise Group (PSE&G) and Exelon without the benefit of public hearings or answers to questions raised about the full impact of the merger on ratepayers. The merger between the two companies will create the largest gas and electric company in the U.S.

The Ratepayer Advocate (RPA) had previously recommended to FERC, in filed comments in May 2005, that public hearings should be held regarding the proposed merger. The RPA raised questions about how the two companies involved in the merger would address reliability and market power domination in both gas and electric service. The RPA disagrees with the FERC determination that the “virtual divestiture” of the two companies’ energy-generating units is enough to eliminate its concern regarding market power. In addition, the Ratepayer Advocate had concerns about how the merger of the Chicago-based Exelon and the New Jersey-based PSE&G would affect jobs in New Jersey.

“The decision by FERC to approve the merger between PSE&G and Exelon is not in the best interest for New Jersey ratepayers,” said Singh. “Hearings should have been held to ensure that there was a full airing of concerns of the public and that all aspects of the proposed merger were explored in what is one of the biggest mergers this nation has ever seen.”

Singh added: “The Ratepayer Advocate will explore its options on this decision. The state Board of Public Utilities hearings will now even be more important and we will redouble our efforts to ensure that the interests of consumers are protected and that all questions are answered over this merger.”

The Division of the Ratepayer Advocate is an independent state agency that represents the interests of utility consumers and serves as an active participant in every case whenever New Jersey utilities seek changes in their rates or services. The Ratepayer Advocate also gives consumers a voice in setting long-range energy, water, and telecommunications policy that will affect the delivery of utility services well into the future.

Additional information on this and other matters can be found at the Division of Ratepayer Advocate’s website at http://www.rpa.state.nj.us

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