PSE&G 2012 Annual Report Download - page 3

Personally, I could not be prouder of the heroic way that
our employees responded to Superstorm Sandy, a defining
event of the year not only for PSEG, but also for the customers
and communities we serve across New Jersey. Sandy, which
struck New Jersey on October 29, 2012, was the most
destructive storm in our 109-year history. Our employees put
aside their own personal storm difficulties and worked non-
stop to safely bring back power and warmth to our customers.
They were assisted by more than 4,000 workers who came
from 24 other states and Canada to support the restoration.
Sandy brought home the extent to which our energy is the
lifeblood of New Jersey’s economy and a necessity of modern
life. The more intense and destructive storms of recent years
may or may not be the new normal of extreme weather. What
cannot be disputed is that an energy strong infrastructure
is important not only to our own future, but to New Jersey’s
quality of life and economic competitiveness.
While Sandy was the most visible test of our employees’
hard work and perseverance, their continued focus on
operational excellence showed in many ways throughout the
year by managing costs and executing on our large capital
program to position PSEG for success. In short:
 We achieved results in line with our full-year earnings guidance.
 We continued one of the longest records in corporate America
for paying dividends.
 We further increased our financial strength, as evidenced by
our continued strong balance sheet and cash flow.
 We moved ahead with a capital investment program of
unprecedented size, with a strong focus on maintaining
reliability and supporting New Jersey’s economic and energy
policy goals.
 We continued to show that energy utilities can be among
society’s most important allies on a path to a sustainable
future, through efforts that expand access to the benefits of
energy efficiency, renewable solar power and other types of
clean generation.
Our strategy – based on the three pillars of operational
excellence, financial strength and disciplined investment –
has served our customers and shareholders well for many
years. We believe the same, consistent approach remains
as important as ever. Indeed, we see it as a key to being
an industry leader for the next 100 years in providing safe,
reliable, economic and green energy.
We emphasize sound fundamentals in executing our
strategy and strive to be proactive, too. Thus, we did not sit
still when we saw lower energy prices on the horizon four to
five years ago. We have repeatedly found ways to get more
out of our assets and reduce costs without compromising
safety or reliability. We simplified the business, improved
our financial position and reduced risk by selling non-core
assets. Moreover, we did all this while increasing our dividend
and reaping benefits from new investments.
RALPH IZZO
Chairman, President and
Chief Executive Officer
chairman
letter from the
The enduring strength of PSEG has always been closely connected with the character of
our workforce. Over more than 100 years our dedicated employees have contributed in
countless ways to keep PSEG energy strong. This was true again in 2012 – a year in which
despite challenges, we had many significant accomplishments.