GPU Energy President: Additional Millions to be Spent, Projects Accelerated.

MORRISTOWN, N.J.--(BUSINESS WIRE)--Sept. 13, 1999--

In testimony submitted to the New Jersey Board of Public Utilities today, GPU Energy President and Chief Operating Officer Dennis Baldassari said the company will significantly increase its forecast for spending by tens of millions of dollars to accelerate projects across New Jersey following record breaking peak demand for electricity this summer.

"While we are already spending substantial sums of money in maintaining and enhancing the electric system each year, we believe we need to accelerate this work. This is especially necessary following a summer in which GPU Energy set a new all time peak demand and PJM exceeded its 1999 base peak load estimate by almost 4,000 megawatts. For GPU Energy, this will amount to additional expenditures of tens of millions of dollars over the next two to three years to accelerate projects and to add new projects to withstand future peaks.

"These projects will include installing larger transformers at some local substations and upgrading electric lines. We have already committed an additional $5 million to secure six new substation transformers. We are also accelerating work to check all 1,500 electric circuits in New Jersey over a two year period - a project formerly scheduled to be done over five years. And next year, we plan to begin using new technology to evaluate the electrical loading of the 207,000 distribution transformers in New Jersey, over time.

"We are committed as a company to continuous improvement, to always learn ways that we can better serve our customers."

Baldassari's testimony was included in GPU Energy's response during NJBPU evidentiary hearings concerning the heat wave the week of July 4.

Baldassari said that the event that had the greatest impact on GPU Energy during the heat wave was equipment failure at the company's Red Bank substation, which necessitated customers be taken out of service while repairs were made July 6-8.

"Once the failure at Red Bank occurred, every resource of the company was turned to solving the problem in as short a period as possible with as little disruption to the customer as possible. Employees worked around the clock to ensure that the work was performed as expeditiously as possible." Baldassari said he regretted that any customer experienced a loss of service.

Baldassari said efforts are also underway to improve communication efforts with township and emergency management officials. "We have implemented changes in our emergency 800 numbers used by police and fire departments to ensure these phones are answered promptly, usually within a few seconds, but in no event any longer than one minute."

In addition to addressing the heat wave, Baldassari also reiterated GPU Energy's commitment to New Jersey. "GPU Energy takes very seriously our role in the state of New Jersey and our contribution to its growth and prosperity," he said. "Since 1996, we have been directly involved in the recruitment or expansion of more than 100 businesses."

He said GPU Energy had also contributed $1 million as a major sponsor and member of the New Jersey Fund for Community & Economic Development. "We have never relented in our focus on New Jersey and our investment in its infrastructure continues to grow."