I am writing today to inform the N.J. public that the unions representing more than 85 percent of the unionized work force at PSEG, including IBEW Local 94, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry, Local 855 and Office and Professional Employees International Union, Local 153, are strongly opposed to the proposed settlement terms offered by the BPU staff recently as part of its ongoing talks concerning the merger of PSEG and Exelon. We cannot and will not support any settlement that includes the loss of any more generating plants and we will actively oppose any movement in that direction.

We are deeply disappointed that the stated parameters of the merger negotiations have been blown up by the BPU staff. Throughout this process, BPU President Jeanne Fox promised "no harm" to PSEG employees as a result of the merger, but now we find that the BPU staff has fired its negotiating arrow directly at New Jersey working families and has painted a target squarely on their backs.

The BPU violated its own ground rules with its most recent proposal and that is unacceptable. The staff proposal to have PSEG sell two more of its generating plants in New Jersey will help no one and will hurt employees. The situation is made worse by the fact that the BPU demand, that the new company shed more power, is unneeded.

That issue was effectively resolved with the findings in the Competitive Impact Statement from the U.S. Department of Justice, a detailed analysis of the situation, which included a positive response to the companies' merger plan.

The proposed merger structure already includes the sale of four plants in New Jersey, along with two in Pennsylvania ensuring that the new company will not be able to exercise market power. Additional divestitures aren't needed and would only be an unfair additional burden on New Jersey workers and their families.

The BPU needs to take a much-needed step backwards and return to a deal structure that addresses the concerns we all initially agreed were critical to a positive outcome. If it does not, they may be assured that we will take advantage of all the options which are available to us.

Chip Gerrity

president, Local 94

International Brotherhood

of Electrical Workers

Hightstown