FOR IMMEDIATE RELEASE
April 1, 2002
Contact: Tim Brown, 302-283-5803



   Conectiv Announces Termination of Agreements Regarding Non-Strategic
                         Baseload Generating Assets


         WILMINGTON, Del. - Conectiv (NYSE:CIV/CIVA) today announced the
termination of agreements that called for the sale to NRG Energy of
approximately 794 megawatts of baseload, primarily coal-fired, electric
generating units by Conectiv's Atlantic City Electric Co. subsidiary.

         The agreements, initially announced in January 2000, provided for
the sale of Atlantic City Electric Co.'s B.L. England Station in Beesleys
Point, N.J. and the Deepwater Generating Station in Pennsville, N.J. They
also called for the sale of minority interests in the Keystone Station,
Shelocata, Pa., and the Conemaugh Station, New Florence, Pa.

         Citing a combination of increased operating costs and changes in
the electric market, NRG Energy elected to terminate the agreements that,
as previously announced by Conectiv, had become terminable by either party
after February 28, 2002. NRG Energy notified Conectiv that it was
terminating the sale on April 1, 2002.

         "While we are disappointed that the sale of the plants will not
proceed as planned, today's announcement is not expected to affect electric
rates, the availability of electricity or the reliability of electric
service in New Jersey or the mid-Atlantic region," said Tom Shaw, President
of Conectiv.

         Conectiv also announced that, in light of the termination, it will
consider various alternatives for the generating assets covered by the
agreements, including the merits of conducting another auction of these
assets in the current energy market.

                                    ###


Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is focused
on two core energy businesses. Conectiv Power Delivery provides safe,
reliable, and affordable energy service to more than one million customers
in New Jersey, Delaware, Maryland, and Virginia. Conectiv Energy uses a
sophisticated power-trading unit to optimize the value of a growing
portfolio of mid-merit power plants that can start and stop quickly in
response to changes in the demand for power within the PJM
[Pennsylvania-New Jersey-Maryland] power pool.

FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 (the "Litigation
Reform Act") provides a "safe harbor" for forward-looking statements to
encourage such disclosures without the threat of litigation, provided those
statements are identified as forward-looking and are accompanied by
meaningful, cautionary statements identifying important factors that could
cause the actual results to differ materially from those projected in the
statement. Forward-looking statements have been made in this Press Release.
Such statements are based on beliefs of Conectiv's (the "Company's")
management ("Management") as well as assumptions made by and information
currently available to Management. When used herein, the words "will,"
"anticipate," "estimate," "expect," "objective," and similar expressions
are intended to identify forward-looking statements. In addition to any
assumptions and other factors referred to specifically in connection with
such forward-looking statements, factors that could cause actual results to
differ materially from those contemplated in any forward-looking statements
include, among others, the following: deregulation of energy supply; the
unbundling of delivery services; an increasingly competitive energy
marketplace; results of any asset dispositions; sales retention and growth;
federal and state regulatory actions; future litigation results; cost of
construction; operating restrictions; increased costs and construction
delays attributable to environmental regulations; and credit market
concerns. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. The foregoing list of factors pursuant to the
Litigation Reform Act should not be construed as exhaustive or as an
admission regarding the adequacy of disclosures made prior to the effective
date of the Litigation Reform Act.