HOUSTON, TX – August 17, 2006 — Rockland Capital Energy Investments, LLC (“Rockland”) and Pepco Holdings, Inc. (“Pepco”) (NYSE: POM) today announced they have reached an agreement under which RC Cape May Holdings, LLC, an affiliate of Rockland, will purchase from Atlantic City Electric Company, an affiliate of Pepco Holdings, the B.L. England Generating Station for $12.2 million. RC Cape May Holdings, LLC will assume certain liabilities associated with the B.L. England Generating Station, including substantially all environmental liabilities.
The purchase price is subject to adjustment based on, among other things, variances in the value of fuel and material inventories at the closing, certain capital expenditures, plant operating capacity, the value of certain benefits for transferred employees and the actual closing date.
B.L. England Generating Station, located in Beesleys Point, Upper Township, Cape May County, provides approximately 450 megawatts of generating capacity from three generating units. Two units burn coal and the third unit burns oil.
While Atlantic City Electric had previously considered shutting the project down, Rockland intends to continue the operation of the facility and plans on making significant investments in the plant to improve overall environmental performance. “We believe that as long as it is operated in an environmentally responsible way, Rockland purchase of BL England will enable the project to continue to be an important source of local power generation and employment,” said Scott Harlan, Managing Director of Rockland.
The sale is subject to approval by the New Jersey Board of Public Utilities, New Jersey Department of Environmental Protection and U.S. Federal Energy Regulatory Commission, as well as certain other legal conditions. The sale is expected to be completed during the first quarter of 2007.