Assemblyman Joseph Cryan

CRYAN INTRODUCES LEGISLATION URGING REJECTION
OF PROPOSED PSEG/EXELON MERGER
Assemblyman Assails Potential Creation of 'Mega-Monopoly'
That Poses 'Dire Consequences' for New Jersey Consumers

(TRENTON) -- Assemblyman Joseph Cryan today introduced legislation to put the General Assembly on record in opposition to the proposed merger between energy companies PSEG and Chicago-based Exelon and calling on the state Board of Public Utilities to reject the controversial deal.The planned combination of the two corporations has come under fire from consumer groups and some officials -- including the Public Advocate and Ratepayer Advocate -- who fear that New Jersey utility costumers would not see appreciable savings or improvements in services.

"The PSEG/Exelon merger would create a mega-monopoly with potentially dire consequences for New Jersey's already cash-strapped energy consumers," said Cryan (D-Union). "This is a bad deal for ratepayers, PSEG employees, and New Jersey. We have a responsibility as a Legislature to derail this boondoggle before it is consummated."

Cryan's is the first measure introduced in the Legislature regarding the deal.

The Assemblyman said the merged entity has not shown any desire to help state ratepayers, noting that the merger proposal includes rate credits that amount to roughly $1 per month per consumer.

Additionally, Cryan noted that Exelon plans to lay off approximately 950 New Jersey workers -- costing the state economy at least $140 million -- while financing severance packages for 35 senior executives in excess of $2 million each.

Cryan said the economics of the deal could cost the average New Jersey consumer $540 annually.

If approved, the new company would become the nation's largest utility, with more than 9 million customers relying on it for electricity and natural gas service. The new company would control assets in excess of $79 billion, annual revenues topping $27 billion, and yearly profits of $3.2 billion.

"The only winners in this deal would be Exelon's Chicago executives, not New Jersey's consumers or the hard-working men and women who made PSEG a model corporate citizen in our state," said Cryan. "We cannot turn back the clock by handing over control of our energy supply to a modern-day trust. The Board of Public Utilities must live up to consumers' expectations and kill this deal."

The Board of Public Utilities is expected to make a final ruling on the proposed merger this summer, following a review by an Administrative Law Judge.

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FOR RELEASE: May 18, 2006

CONTACT:
Assemblyman Cryan (908) 624-0880
Derek Roseman (609) 292-7065