PSEG Nuclear awards contract to Siemens-Westinghouse for turbine replacement at Salem Units 1 and 2

June 24, 2002 — PSEG Nuclear LLC announced Friday that Siemens-Westinghouse Power Corporation (SWPC) has been awarded the contract to provide upgraded turbines for the Salem Units 1 and 2 nuclear generating stations Turbine Upgrade Project.

This project, which will take approximately four years to complete, will increase PSEG Nuclear’s electrical generation capacity by approximately 90 MWe with no environmental impact.

“We have been safely generating power for the northeast for 25 years,” said Harry Keiser, President and Chief Nuclear Officer, PSEG Nuclear. “This investment is a clear sign that the PSEG Power LLC Board of Directors has confidence in our operation and our employees. Some people have allowed the events of September 11, 2001 to raise questions about the future of nuclear power, but we remain confident in our future and the future of the industry.”

“Siemens-Westinghouse brings a level of experience to our team that will prove invaluable as this project moves forward,” said Ray Moore, Turbine Upgrade Project Manager for PSEG Nuclear. “I am confident that we have the right team to complete this project with safety and reliability as our central focus, and I am anxious to get started.”

Through the agreement Siemens-Westinghouse Power Corporation will assist PSEG Nuclear in the replacement of the main steam turbines at both Salem units. Project planning and equipment manufacturing will commence immediately.

Both the high and low-pressure elements of the Salem Unit 1 turbine will be replaced during the spring 2004 refueling outage and this is expected to provide approximately 50 additional MWe. The low-pressure elements of the Salem Unit 2 turbine were previously replaced in 1996. The replacement of the high-pressure element will be completed in 2006 and is expected to produce approximately 40 additional MWe.

PSEG Nuclear operates Salem Units 1 and 2, two 1,150 megawatt pressurized water reactors, and Hope Creek, an 1,100-megawatt boiling water reactor. The three units are located on one site in Salem County, NJ, and together comprise the second largest nuclear site in the country.

PSEG Nuclear is a subsidiary of PSEG Power, one of the largest independent power producers and energy trading companies in the U.S., and an affiliate of Public Service Electric and Gas Company (PSE&G), New Jersey’s largest electric and gas utility. PSEG Power currently has approximately 16,000 megawatts of electric generating capacity in operation, construction, or advanced development.

In addition to PSEG Nuclear LLC, PSEG Power’s subsidiaries include PSEG Fossil, which owns and operates fossil-fueled generating facilities and PSEG Energy Resources and Trade, one of the nation’s largest (by volume) energy trading companies. PSEG Power and PSE&G are subsidiaries of Public Service Enterprise Group Incorporated (NYSE: PEG – News), a diversified energy holding company with headquarters in Newark, NJ.

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