PSE&G 2006 Annual Report Download - page 5

pseg 2006 annual report pp. 2/3
I am pleased to report that 2006 was a year of significant, continued achievement for
your company.
We generated solid earnings and cash flow, set new company records for electric output
at our nuclear stations and fossil fleet, and won recognition for the second consecutive
year as America’s most reliable electric utility.
Moreover, 2006 was our employees’ safest year ever, reflecting their continued dedica-
tion to the high performance standards that underpin your company’s success. This
accomplishment builds on more than a decade of safety progress during which employees
have reduced the number and severity of accidents by more than two-thirds. It is a
tribute to their focus each day on making our workplace safer and their care for the cus-
tomers and communities we serve.
A Strong Stand-Alone Position and Outlook
These and other accomplishments prepared the ground for an even brighter future. By a
considerable margin we have the strongest financial outlook in my 20-plus years as CEO
of your company: We anticipate operating earnings to be about one-third higher in 2007
than 2006, and in excess of ten percent higher still in 2008.
On a disappointing note, we were unable to complete the merger with Exelon due largely
to the demands of the New Jersey Board of Public Utilities. Those demands, had they
been accepted, would have produced a far inferior outlook for the combined company
than our stand-alone prospects. Exelon reached a similar conclusion and terminated
the merger agreement.
Throughout the merger process we kept a close eye on maintaining a strong go-it-alone
strategy in the event the merger did not succeed. As a result, we are a much stronger and
better positioned company than we were in December 2004 when the merger agree-
ment was signed.
letter from
the chairman of the board &
chief executive officer
e. james ferland