PSE&G 2005 Annual Report Download - page 10

8PSEG 2005
A Robust Delivery System
PSE&G continued to invest in infrastructure improvements
across its pipes-and-wires network, which plays a critical
role in supporting New Jersey’s economy and quality of
life. In 2005, PSE&G completed and placed into service
a new, third bank of transformers at the Branchburg
switching station, an important transmission hub in
central New Jersey. The additional bank of transformers
boosted the station’s capacity by 950 megawatts, to
2,150 megawatts, allowing greater transfers of electric
power while improving reliability.
Our gas delivery base rates have been stable for the
past four years, during which we invested more than
$685 million in technology and infrastructure improve-
ments. In light of these large and necessary outlays,
PSE&G filed in September 2005 for a rate increase
of $133 million, or 3.8 percent, in gas base rate rev-
enues. We requested this rate relief take effect in June
2006, after this winter’s heating season, to ease the
impact on our customers.
A Focus on Affordable Energy
We continued our best efforts to keep energy costs as
low as possible for our New Jersey utility customers.
This was no easy task against the backdrop of rising
fuel and power prices. As an energy delivery company,
PSE&G does not mark up the cost of energy supply
provided to its customers. Rather, PSE&G works hard to
manage and control these costs, which make up more
than two-thirds of the average customer’s bill. We have
found many opportunities to hedge against potential
price run-ups by purchasing gas and storing more of it
in off-peak periods. While natural gas prices increased
A Century of Progress: PSEG’s success for more than a
century has been built on providing safe, reliable energy
to benefit customers, investors and the wider public. The
company’s generation fleet is among the largest in
America’s Northeast.