PSE&G 2008 Annual Report Download - page 5

would include the largest pole-mounted
solar project in the United States.
Also, we are actively pursuing opportuni-
ties to develop wind energy resources.
We are a joint venture partner in Garden
State Offshore Energy, which was chosen
as one of three companies to receive a
$4 million grant from the state of New
Jersey to study wind and environmental
characteristics off New Jersey’s shore.
This is the first step in a proposal
to develop a 350-megawatt offshore
wind farm.
Energy storage technologies could
become important to renewable
resources like the wind, which by their
nature are variable. In 2008, we entered
into a joint venture, Energy Storage and
Power, to license and develop the next
generation of compressed air energy
storage technology (CAES).
Investing to Upgrade Our Energy
Delivery Network and Service
Along with efforts for green energy, we
continue our longstanding focus on reli-
ability. We have a mature service territory
with substantial capital improvement
requirements.
The PJM Interconnection, which operates
the electricity grid in 13 states and the
District of Columbia, has mandated the
addition of a new 500,000-volt power line,
called the Susquehanna-Roseland line, to
run from Berwick, Pennsylvania to the
Roseland area of New Jersey. In January
2009, PSE&G submitted an application to
the New Jersey Board of Public Utilities to
build the New Jersey portion of the line,
along a route carefully chosen to minimize
impact on people and the environment.
We are working hard to keep the public
informed as we proceed.
In January 2009, we announced plans
for an additional $698 million in infra-
structure projects, including street light
upgrades and the replacement of older
equipment with advanced components
to help improve network reliability and
reduce costly outages. These invest-
ments not only will support better service
quality but promote job creation and
economic recovery.
We are also investing to improve cus-
tomer service. The centerpiece of this
effort is a new customer information
system with a range of advanced data
and communications capabilities. It will
give our customers greater flexibility to
manage their accounts and provide our
employees with more timely information
to better serve them.
Investing to Address Evolving
Energy Supply Needs
Our infrastructure requirements also per-
tain to power generation. We are investing
more than $1 billion in our coal units,
installing advanced emissions control
equipment to make them among the
cleanest facilities of their type. This effort
should produce additional benefits,
including greater flexibility in sourcing fuel
and improved reliability.
Our nuclear assets are well-situated in a
carbon-constrained world and will remain
critical to meeting future demands for
energy. We are exploring the possibility of
new nuclear units at the site of our
nuclear facilities in southern New Jersey.
While in an early stage of evaluating this
option, we are determined not to lose
sight of it. Nuclear is simply too important
as a proven source of clean energy to
do otherwise.
We continually explore opportunities for
new energy supply. In 2008, we were
awarded a contract by the state of
Connecticut for 130 megawatts of new
peaking capacity from our New Haven
Harbor generating station. The new peak-
ing units are scheduled to be built in the
second half of 2011 and go into service in
June 2012.
Strategic Outlook
Our assets are well-positioned in a
business climate that will continue to be
influenced by environmental, aging infra-
structure and energy capacity needs. We
have well-run operations in competitive
wholesale energy markets and a stable
regulated utility known for its reliability
and strong customer relationships. This
balance enhances our ability to provide
our shareholders with an attractive com-
bination of growth and income.