PSE&G 2010 Annual Report Download - page 5

First, we have continued our efforts to reduce risk. In 2010,
we achieved a major milestone by selling the remaining
international leases in PSEG Energy Holdings’ portfolio.
Second, we reinforced our focus on core markets by agreeing
to sell our Texas combined-cycle generating facilities for
approximately $687 million. While the sale of our Texas
operations will reduce the size of our generation portfolio by
2,000 megawatts, it will keep our focus squarely on markets
and assets with the highest value.
Third, through the continued fi ne work of our employees, we
found ways to achieve meaningful effi ciencies and cost savings
without compromising safety or reliability. Among other steps,
we have reduced our distribution-related capital expenditures at
PSE&G to support our ability to earn our allowed return without
the need for additional rate relief.
Yet, we are not stopping there in our company-wide efforts to
identify and implement new savings. This will continue to be a
priority as we strive to further improve performance.
We do not expect that cost effi ciencies will entirely offset the
ongoing impact of lower energy prices, or other pressures, on
our business. Nevertheless, we believe there is wisdom in the
maxim that saving and investing are two sides of the same
coin. By protecting our fi nancial strength, we have improved
our ability to address the evolving needs of our customers while
delivering value to our shareholders.
DISCIPLINED
investment ...
Our fi nancial strength provides the fl exibility to prudently explore
growth opportunities – in a thoughtful and disciplined manner.
Over the next three years, we will be pursuing a $6.7 billion
investment program – one of the largest in our history. Most
of this investment will be at PSE&G, for the purposes of further
improving reliability, providing a stimulus for job creation, and
bringing green solutions to New Jersey.
Our mandate includes major transmission projects required
to assure reliability. While construction of the Susquehanna-
Roseland (S-R) line has been delayed, we are moving forward
with many other essential reliability projects in New Jersey.
Also, PSE&G is making green investments to improve access to
energy effi ciency and renewable solar power for its customers
across the state. Our efforts are creating jobs in a new industry
while helping New Jersey to build a position as a leading solar
energy-producing state, second only to California nationwide.
Our energy effi ciency initiatives have made it possible for
thousands of our urban residential customers to benefi t from
home energy checkups or improvements. Many thousands
more benefi ted from our energy effi ciency programs geared
to the needs of facilities such as hospitals that serve the
community. In 2010, our energy effi ciency programs provided
customers with the capability to reduce their annual energy use
by the equivalent of 283 million kilowatt hours.
PSE&G’s work includes $694 million in accelerated electric and
gas infrastructure projects, creating about 900 new utility and
contractor positions. Among other notable accomplishments,
our gas delivery group replaced more than 1 million feet of
aging gas mains through this work. Additionally, we have asked
our regulators for approval to invest approximately $400 million
on energy effi ciency, gas distribution and electric distribution
programs over a 24-month period in support of state efforts to
boost the economy by improving our infrastructure.
We expect another busy year with our many solar initiatives.
In 2010, PSE&G placed into service 11 utility-scale solar install-
ations, including four solar farms. In addition, 72,000 solar units
were installed on utility poles across our New Jersey service
territory. Combined, these solar installations and pole-attached
units provided 28 megawatts of highly distributed solar power.
Through our innovative solar loan program, we facilitated an
additional 19 megawatts of solar capacity by year’s end.
We did not limit ourselves to green opportunities in New Jersey.
In 2010, our PSEG Solar Source subsidiary completed and