PSE&G 2004 Annual Report Download

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2004 ANNUAL REPORT
COMMITMENT

Table of contents

  • Page 1
    2004 ANNUAL REPORT COM M I T M E NT

  • Page 2
    ...Income from Continuing Operations Net Income Weighted average common stock shares outstanding-(thousands) Basic Diluted Dividends Paid per Share Book Value per Share-Year-end Market Price per Share-Year-end Total Assets 2004 $ 10,996 $ $ 721 726 2003 $ 11,139 $ $ 852 1,160 % CHANGE (1) (15) (37...

  • Page 3
    ... 2 10 CHAIRMAN'S LETTER THE MEANING OF COMMITMENT IN THIS REPORT YOU WILL READ ABOUT THE STRENGTH OF PSEG 'S COMMITMENTS TO : 14 S A F E T Y / PSEG RECOGNIZES THAT SAFETY IS THE SUREST FOUNDATION OF SUCCESS IN OUR BUSINESS. WE ARE GUIDED BY A SIMPLE PRINCIPLE: HEALTH AND SAFETY WILL NEVER...

  • Page 4
    ... for plant operations at our Salem and Hope Creek generating stations. Exelon is a leader in nuclear energy operations. We expect that the application of Exelon's proven management model to the Salem and Hope Creek stations will produce quality results at these facilities. people of New Jersey and...

  • Page 5
    ..., with lower risk. E. JAMES FERLAND (LEFT) AND JOHN W. ROWE, THE LEADERS OF PSEG AND EXELON RESPECTIVELY, AT THE PRESS CONFERENCE ANNOUNCING THE HISTORIC MERGER AGREEMENT OF THE TWO COMPANIES ON DECEMBER 20, 2004. The merger has a complementary focus on safe, reliable, lowcost utility service, in...

  • Page 6
    ... dividend rate to $2.24 per share. Looking ahead, the merger agreement provides that our shareholders The merger also addresses the key issue of leadership succession at PSEG. The new and larger organization envisaged under our merger agreement will have as its CEO John Rowe, Exelon's chairman...

  • Page 7
    ... in each region of While energy markets were difficult in 2004, PSEG Power also faced serious operational challenges during the year. There were extended outages at several of its generating stations, including our critically important Salem and Hope Creek nuclear units. We used the outages...

  • Page 8
    ..., cash generation and risk reduction. Overall, this business realized over $300 million from asset sales in 2004. 2005 will be a critical transition year in which we will be working intensively with Exelon to prepare for a successful merger. The Boards of Directors of PSEG and Exelon unanimously...

  • Page 9
    ... for the PSEG family of companies 5 YEAR CUMULATIVE COMPARATIVE RETURNS AS OF DECEMBER 31, 2004 PSEG Power's number-one goal is to attain consistently excellent $200 in 2005: plant operations, with safety first, as the key to capturing opportunities in the marketplace. Our nuclear services operat...

  • Page 10
    ...to guide our organization and employees. In 2004, our company undertook significant new philanthropic initiatives. Most notably, the PSEG Foundation committed $5 million-the largest single gift in our company's history- to help build a new world-class Children's Specialized Hospital in New Jersey.

  • Page 11
    ... in caring for people in need-both in New Jersey and elsewhere. When Florida suffered four destructive storms in September 2004, PSE&G employee volunteer crews did extraordinary work in the largest mutual-aid power restoration effort in our company's history. The following pages in this report...

  • Page 12
    DE DIC AT ION EX CEL LEN CE DIL IGE NC E TEN AC ITY 10 / 11

  • Page 13
    THE MEANING COMMITMENT

  • Page 14
    12 / 13

  • Page 15
    ...MATTERS IN A RAPIDLY CHANGING WORLD. THE ENERGY INDUSTRY HAS SEEN DRAMATIC CHANGES IN RECENT YEARS. COMPANIES HAVE RESTRUCTURED. REGIONAL ELECTRICITY MARKETS HAVE BEGUN TO DEVELOP. THERE ARE NEW MARKET OPPORTUNITIES AND NEW COMPETITIVE PRESSURES. PSEG HAS CHANGED AND ADAPTED TO NEW CIRCUMSTANCES-AND...

  • Page 16
    ... S AFELY, RELIABLY AND EFFICIENTLY. PSEG's safety commitment goes back to the early days of the company. Over the years the company's New Jersey utility, PSE&G, has pioneered innovations such as the use of bucket trucks and ï¬,ame-retardant clothing that have improved safety and been adopted across...

  • Page 17
    ... The company has a network of Safety Councils that foster teamwork, share information, and develop new ideas and approaches to improve safety. Safety Councils in each location meet regularly to discuss and resolve issues and learn from on-the-job experience. frequency and severity of accidents have...

  • Page 18
    ... corridor, which extends diagonally across the state between New York City and Philadelphia. The company's infrastructure is a backbone of New Jersey's economy, underpinning the state's position as a leading center of business innovation. third consecutive year, PSE&G received the Reliability...

  • Page 19
    ...IMPROVE RELIABILITY. delivery operations, employees achieved these excellent outcomes by putting safety first-resulting in fewer and less severe injuries than in years past. In 2005, PSE&G will initiate a pilot program for a promising new technology to help customers manage their energy needs. It...

  • Page 20
    ... stations have a combined capacity of approximately 14,000 megawatts-enough power to light about ten million homes. Most of PSEG Power's generating assets are strategically located within PJM, one of the nation's largest and most developed energy markets, in a PSEG Power's wholesale energy business...

  • Page 21
    ...Salem and Hope Creek will be substantially enhanced as Exelon implements its highly regarded management model at these facilities. In a business like PSEG Power's, reliability ultimately depends on excellence in ï¬,eet operations-within a framework that gives absolute priority to safety. PSEG Power...

  • Page 22
    ... JERSEY AND IN OTHER LOCATIONS WHERE PSEG OPERATES. In 2004, PSEG received the Corporate Philanthropist of the Year award from the Community Foundation of New Jersey. The company supports many charitable endeavors throughout the state-especially programs benefiting children, economic development...

  • Page 23
    ... 400 Newark school children with a healthier ride to school. The program reï¬,ects PSEG's continuing emphasis on programs that aid children, support a healthier environment and improve the quality of life in New Jersey's cities. While the corporate landscape continues to change, PSEG's commitment...

  • Page 24
    ...-documented, corporate-wide greenhouse gas inventory, while participating with the U.S. Environmental Protection Agency and other stakeholders to establish strong, verifiable accounting practices for greenhouse gas emissions reductions. technology at the Mercer generating station in New Jersey to...

  • Page 25
    ... the gas plant once stood. to produce cement. PSEG also donates thousands of refurbished computers to schools, training centers and nonprofit organizations in New Jersey through a long-established program. Environmental leadership at PSEG also involves effective policies to conserve resources...

  • Page 26
    ... and General Counsel of PSE&G and PSEG Services BOARD OF DIRECTORS has been a director since February 2003. Has been Vice President and Treasurer of Merck & Co., Inc. of Whitehouse Station, New Jersey, a global pharmaceutical firm that discovers, develops, manufactures and markets human and...

  • Page 27
    ... agents for the common and preferred stocks are: Stockholder Services PSEG Services Corporation P .O. Box 1171 Newark, NJ 07101-1171 CONTINENTAL STOCK TRANSFER AND TRUST COMPANY 17 Battery Place, 8th Floor New York, NY 10004 ENTERPRISE DIRECT Please include your account number or social security...

  • Page 28
    PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 80 PARK PLAZA / NEWARK, NJ 07102 973.430.7000 / WWW.PSEG.COM