For Immediate Release
Mays Landing, N.J. - Atlantic City Electric, a subsidiary of Pepco Holdings, Inc. (NYSE: POM) today announced the closing of the sale of the utility's interests in Keystone and Conemaugh generating facilities to Duquesne Light Holdings, Inc. for $173 million is final.
The sale was approved by the New Jersey Board of Public Utilities on July 19, 2006.
The generation assets, located in western Pennsylvania are a 2.47 percent interest in Keystone Station and a 3.83 percent interest in Conemaugh Station, for a total of 108 megawatts.
The net gain from the sale will be used to offset the remaining unamortized aggregate adjusted deferred balance. The remaining amount will be returned to customers, with interest over a 33-month period, as a credit on their bills.
Atlantic City Electric's generating assets were offered for sale in May 2005 through a competitive bidding process. Also offered in auction was Atlantic City Electric's B. L. England Generating Station. In August 2006, Atlantic City Electric reached an agreement to sell the B.L. England Generating Station, located in Cape May County, N.J., to RC Cape May Holdings, LLC, an affiliate of Rockland Capital Energy Investments, LLC. The sale is subject to various regulatory approvals, as well as certain other legal conditions. The sale is expected to be completed during the first quarter of 2007.
Atlantic City Electric a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric delivery services to more than 500,000 customers in southern New Jersey.
FORWARD-LOOKING STATEMENTSExcept for historical statements and discussions, the statements in this news release constitute "forward-looking statements" within the meaning of federal securities law. These statements contain management's beliefs based on information currently available to management and on various assumptions concerning future events. Forward-looking statements are not a guarantee of future performance or events. They are subject to a number of uncertainties and other factors, many of which are outside the company's control. Factors that could cause actual results to differ materially from those in the forward-looking statements herein include general economic, business and financing conditions; availability and cost of capital; changes in laws, regulations or regulatory policies; weather conditions; competition; governmental actions; and other presently unknown or unforeseen factors. These uncertainties and factors could cause actual results to differ materially from such statements. PHI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results and prospects of PHI.