art of collections - Pseg.com

Photo: mark lovretin
• PSEG •
PROUD
RECIPIENT
psegoutlook
2010
2010
deCember 2010/january 2011 a monthly publication for People providing Safe, reliable, Economic and Green energy, like … al van hart, plant engineer, essex generating station.
Field collector Steve
Feliciano is on his way to
visit a hackensack customer
whose PSe&G account is
past due. he will review
assistance options and
payment plans and try to
collect at least the minimum
due. if unsuccessful, he will
disconnect electric service.
PSeG readies
for effective
crisis response
By Jeanne Pierattelli
A crisis can have many faces. For PSEG, a crisis can include
death, serious injury, or threat to people; damage to the
environment, property and/or data; disruption of operations;
threat to its ability to do business; or threat to its financial welfare
or image. If a crisis should occur, PSEG must be prepared to
handle it effectively.
“There are two overarching objectives for efficient response to
any crisis: defining what to do and defining who does what,” said
Mike Paszynsky, vice president-business assurance and resilience
(BA&R). “While the first objective can remain fluid, depending
upon the event, the second should ideally be defined in advance via
a well-thought-out and tested crisis management strategy. Defining
this strategy is my – and my team’s – job. The approach we use
is goal-oriented: protect employees, ensure that customers have
essential energy services, and maintain or restore critical business
operations.”
Government agencies have similar objectives and have
formalized their approach using the National Incident Command
System (NIMS). PSEG has adopted this process, as well. The
The compassionate
art of
collections
Incident Command System (ICS), part of NIMS, has proven
to be a successful model for emergency response even for
the private sector. During the 9/11 response and recovery,
Con Edison used ICS effectively to ensure the safety of its
employees. Con Edison recently reported that none of
its workers became ill from working at the 9/11 site and
credits the use of the ICS model.
Because of the nature of PSEG’s business, crisis
management always played a key role in helping to
manage its operations. Since 9/11, however, business
continuity, disaster recovery, and crisis management
have taken on a more strategic and critical focus.
PSEG enhanced its executive crisis management
See CRISIS, Page 6
By Beth Gill
When you get your bills, do you pay them
all on time or let some slip by the due date?
About 85 percent of PSE&G customers pay their bills on time. The remaining
15 percent are taking longer and longer to pay their past-due bills.
The amount past due and owed to PSE&G for more than 180 days has
doubled since January 2008, and has closely mirrored the monthly percentage
increases in New Jersey unemployment. As of late November, the amount past
due for more than 180 days is $117 million.
To help mitigate the impacts of the economy, the company has stepped up
efforts to improve the efficiency and effectiveness of the collections process.
“Our goal is to collect monies owed as quickly as possible for the energy
services we have already provided,” said Claire Bartolomeo, consultantcustomer
service collection, who helps struggling customers apply for payment
assistance. “As a result, we have a very active and compassionate collections
process. To collect while not antagonizing the customer is truly an art.”
PSE&G’s collections process
• PSE&G is not permitted to charge late fees to residential customers.
• Customers unable to pay their bills should call PSE&G collections
or stop by one of the utility’s 16 walk-in service centers to arrange
See COLLECTIONS, Page 6
Scott r. nawrocki (left), supervisory special agent (Joint terrorism task Force)
for the FBi, speaks with Frank mcCormick, PSeG’s manager-asset protection
and preparedness. nawrocki gave an overview of the FBi’s incident response
process to the PSeG executive Crisis management team.
Photo: mark lovretin
INSIDE OUTLOOK
3
Ma r k DeVo t i:
On the record. p. 3.
5
in V e s t i n g f o r
g r o w t h:
Our bridge to a
strong future. p. 4-5.
7
Pse&g n a M e D
MiD-at l a n t i c’s
most reliable
electric utility. p. 7.
Safety Wat c h
2009 YTD 2010 YTD Ch a n g e
NOVEMBER NOVEMBER
OSHA Recordable Injuries
1.53 1.20 t
(OSHA total cases include OSHA Hearing Loss Cases)
OSHA Recordable Rate
155 121 t
(OSHA total cases include OSHA Hearing Loss Cases)
OSHA Days Away From Work Rate
19.99 11.91 t
(Lost Time Days Severity Rate)
Motor Vehicle Collisions
251 258
(MVC includes Commuting Collisions)
t
Visit the Health & Safety – the
Only Choice Website at
www.infocentral.pseg.com.

Published monthly for the employees of
Public Service Enterprise Group,
80 Park Plaza, Newark, N.J. 07102
News Office: T-10, Newark.
C Printed on recycled paper
ForWarD-lookinG Statement
psegoutlook
the statements contained in this communication
about our and our subsidiaries’ future performance,
including, without limitation, future revenues, earnings,
strategies, prospects and all other statements that are
not purely historical, are forward-looking statements
for purposes of the safe harbor provisions under
the Private Securities litigation reform act of 1995.
although we believe that our expectations are based
on reasonable assumptions, we can give no assurance
they will be achieved. there are a number of risks
and uncertainties that could cause actual results to
differ materially from the forward-looking statements
made herein. a discussion of some of these risks and
uncertainties is contained in our annual report on
Form 10-k and subsequent reports on Form 10-Q
and Form 8-k filed with the Securities and exchange
Commission (SeC). these documents address in
further detail our business, industry issues and
other factors that could cause actual results to
differ materially from those indicated in this
communication. in addition, any forward-looking statements
included herein represent our estimates only
as of today and should not be relied upon as
representing our estimates as of any subsequent date.
While we may elect to update forward-looking statements
from time to time, we specifically disclaim any
obligation to do so, even if our estimates change, unless
otherwise required by applicable securities laws.
2
EdITOR:
Melissa Ficuciello
973-430-3819
melissa.ficuciello@pseg.com
aSSISTaNT EdITOR:
Lee Gray
973-430-5122
lee.gray@pseg.com
CREaTIvE dIRECTION:
PSEG OUTLOOK
Kathy Spina
dESIGN aNd LayOuT:
arlene Farenci
John Masi
CONTRIbuTORS:
virginia biggins
beth Gill
Erica Lembo
angelica Marucci
deann Muzikar
Zach Narrett
Cheryl Olcheski
Jeanne Pierattelli
Paul Rosengren
Nicole Swan
A time to
celebrate
achievements
and
say
thanks
IIn this season when we count our blessings, it is important
to celebrate our successes, too. Without exaggeration, 2010
was a year of outstanding accomplishment.
In this brief space, it is impossible to discuss all of
the ways in which our employees’ contributions during
2010 made us a stronger, more successful company. But
clearly, the year’s achievements were the product of great
teamwork, dedication and perseverance across the board.
A few examples: In March, PSE&G safely restored
635,000 customers, virtually all within a week, following the
worst storm in our history in terms of outages. In a summer
with record heat, Fossil responded with a great summer run.
Combined with another strong performance from Hope
Creek, PSEG Power increased year-over-year electricity
“ ... our employees’ strong
focus on operational
excellence has given us
the financial strength
to make disciplined
investments for growth ... ”
output by 12 percent through the third quarter of 2010.
And, employees throughout the company pitched in with
new savings and efficiencies that supported our results in a
challenging environment.
In addition, we made significant progress with our green
initiatives. In New Jersey, PSE&G has 20 solar projects under
way or in development, including four solar farms and more
than 60,000 solar panels that have been installed so far
on utility poles across our service territory. On the energyefficiency
front to date, about 6,500 homes received energy
audits, 29 hospitals obtained investment-grade energy audits,
and 190 towns benefited from new, green street lights.
insight out
By ralPh izzo
PSeG Chairman, President and Chief executive officer
We made strides in building a renewables business
beyond New Jersey, as well. In 2010, PSEG Energy Holdings
completed and began operating the largest solar facility
in Ohio and the second largest in Florida. Its portfolio
includes 29 solar megawatts in three states.
We did not forget about our long-standing commitment
to safety or reliability, either. While recognizing that there is
always room for improvement, we are on track to have one
of our safest years ever. Regionally, PSE&G won its ninth
consecutive ReliabilityOne Award and topped J.D. Power’s
rankings for satisfying business gas customers. Among other
accomplishments, Nuclear successfully completed two
refueling outages, and Hope Creek achieved a 100 INPO
rating – a major milestone in nuclear excellence. Fossil got
the job done with flying colors, too.
We further advanced our strong environmental
commitment during the year with back-end technology
installations at our New Jersey coal plants. We moved ahead
with our plans for new peaking units and nuclear uprates,
and filed for an early site permit to prepare the way for
new nuclear, if conditions warrant. And, while sharpening
our pencils to keep costs in line, we continued investing
aggressively in our core infrastructure.
In sum, our employees’ strong focus on operational
excellence has given us the financial strength to make
disciplined investments for growth and, at the same time,
extend one of corporate America’s longest records for
paying dividends. With invaluable behind-the-scenes
support, PSEG earned increased recognition for building a
sustainable energy strategy – winning the EEI Edison Award
and being named to the Dow Jones Sustainability World
Index and the Carbon Performance Leadership Index.
Finally, as in past years, our employees were terrific in
being there for people in need through countless volunteer
activities. The accomplishments of 2010 say a great deal not
only about the qualities that make PSEG a special company,
but about the character of People providing Safe, reliable,
Economic and Green energy. You have every reason to feel
proud, and I could not be prouder of you.
Congratulations on these achievements and many more.
With heartfelt thanks, my personal best wishes to you and
your families for a safe and happy holiday season.
Photo: mark lovretin
PeopleFirst
Mark DeVoti:
On the record
If you know PSEG’s homeland security manager,
Mark DeVoti, the façade seems to fit a certain
stereotype sometimes associated with this field
of work: wears dark suits, works with government
agents, moves stealthily around room perimeters
during company events, and maintains a shroud of
confidentiality over his work to protect the company’s
best interests. And then, whenever he gets the chance,
he trades the blue suit for a pair of blue jeans and
enjoys some much-loved pastimes.
“I love watching NASCAR with my son and listening
to country music with my daughter,” said DeVoti. An
avid country music aficionado, with a soft spot for
southern rock, DeVoti’s favorites run the gamut from
“new” country (Brad Paisley, Craig Morgan, Billy
Currington, Alan Jackson, and Montgomery Gentry)
to “older school” country (Randy Travis, Alabama, and
Charlie Daniels ).
Now in his 27th year with PSEG, DeVoti joined
the claims department in 1984, working there for 14
years before moving to corporate security, now called
business assurance and resilience (BA&R). “I feel that
I have the perfect background for the new business
assurance and resilience department,” he said. There
are other benefits, too. “You’d be surprised at what
people tell a claims investigator,” he said. “Whatever the
issue behind the claim, I always was taught what went
wrong, why it happened, and how it should have been
done correctly. I can build a house today because of
what I learned in PSE&G claims, and I have.”
Fast forward to 2010, and DeVoti now spends
his days as the subject matter expert on homeland
security-related requirements and issues on behalf
of PSEG’s business assurance and resilience group
and for business unit leaders. His job is to identify
the regulations that impact the company, develop
strategies to help the company meet those regulations
and, ultimately, deliver practices across PSEG to
comply with those regulations and requirements.
“Congress reacts to perceived threats without
realizing the onerous effects that doing so has on
businesses,” DeVoti explained. “My challenge is to get
involved before the legislation is being developed so
that I can help to shape it, mitigate its impact on our
lines of business, and then comply with it, to allow for
innovative and proactive ideas to reduce capital and
O&M costs.
DeVoti said that by working hand in hand with
federal and state government to shape legislation,
PSEG has been able to avoid hundreds of thousands
of dollars worth of costs to its customers that may
have been incurred had PSEG not had a seat at the
table. “For example, the Coast Guard once ordered
us to spend $130,000 on gates and fences at a PSEG
generating station,” DeVoti said. “Now that PSEG is a
member of the Alternative Security Program (ASP),
we were able to use the theory of “equivalent security”
measures already in place, based on decades of
experience of protecting critical infrastructure, and
we didn’t have to spend the money.”
By meliSSa FiCuCiello
The Electric Sector ASP was the first such program
to be approved by the U.S. Coast Guard. Member
companies, such as PSEG, may use the ASP to satisfy
Coast Guard regulatory requirements through
equivalent security measures for facility security
plans. It was developed by industry experts based
on a comprehensive assessment of industry security
vulnerabilities and their experience in handling
those threats. Getting PSEG into the ASP as a voting
member for the Electric Sector in March 2009 is one
of DeVoti’s proudest career accomplishments.
“Now, every day, I have to promote our company’s
position to regulators so that they trust us to do the
right thing to protect our critical infrastructure,”
DeVoti said. “Security is not only about gates, guards
and cameras. It’s about people and relationships.”
mark Devoti
PSEG Ho m E l a n d SEcurity manaGEr
nEwark
“Mark’s years of experience in both claims and
corporate security have been invaluable to the
department,” said Frank McCormick, manager-asset
protection and preparedness and DeVoti’s supervisor.
“His keen ability to develop relationships with strategic
business partners who he can contact 24/7 is critical to
our overall success – and he’s exceptional at it.”
DeVoti added, “You have to like and care for what
you’re doing to be successful at your job. Be serious,
but also maintain a sense of humor when there are
setbacks. Be able to shake things off and move on.”
DeVoti has deep family roots here – his great-great
uncle worked on the electric lines back in 1903, the
year the company was founded, and his wife has a
number of family members both retired and some
still in the company. “At PSEG, you meet people who
have been here a long time,” he said. “Other places
I’ve worked have just been stepping stones for their
employees: build your portfolio and then move on for
more money. Here, operational excellence creates an
atmosphere of stability because you’re not taking risks
– and people seek to stay.” O
PhotoS: mark lovretin
>
>
We’ve Got
Mail
After reading the October benefits issue of PSEG
Outlook and my annual enrollment letter, I see that the
premiums for medical coverage have increased for
2011. Can you explain why?
– A PSEG Power employee
Premiums for 2011 medical coverage have increased as a
result of increased overall health-care costs. all employers
who offer medical coverage are impacted by the rising cost
of health care. Some of the factors that contribute to the
rising cost include the increased use of new treatments,
new and more expensive state-of-the-art technologies,
new and costlier drugs, increases in chronic diseases, and
health-care administrative costs. For both represented and
maSt employees, overall medical plan costs are estimated
to rise above $125 million for 2011, which is an increase
of 8.8 percent over 2010 costs.
increased medical plan costs translate into additional
costs for both PSeG and our employees. although the
cost of health care continues to rise, PSeG invests in
wellness programs that encourage all employees to
get healthier and financial incentives for those maSt
employees who participated in the healthy living Premium
Discount during the annual enrollment period. one of the
best ways to lower or control costs is to lower expenses
without jeopardizing health and wellness benefits. through
incentives, employees can take charge of their own
health and wellness, with the goal of reducing health-care
costs in general. in addition to incentives, the company
also offers health management programs for chronic
conditions such as diabetes, and wellness programs for
back care, blood pressure, nutrition, smoking cessation,
weight management, stress management, exercise and
cholesterol.
For more information about health and wellness programs,
please visit www.pseg.com/benefits or call Benefits
express at 1-800-571-0400.
– Christine De Stefano, vp-compensation and benefits
PSEG Outlook welcomes your correspondence.
Please e-mail the publication’s editor at melissa.
ficuciello@pseg.com, or send your letter to
Melissa Ficuciello, Editor, PSEG Outlook, 80 Park
Plaza, T-10, Newark, N.J. 07102. All correspondence
should include the writer’s full name, address and
daytime telephone number. Anonymous letters may
be submitted, but will inhibit the editor’s ability to
contact the author with questions, should a reply
be necessary. Correspondence may be edited for
purpose of clarity and space.
Pseg Vision
Being a recognized leader for:
People providing
Safe, reliable
Economic and
Green
Energy
PSEG OUTLOOK 3

2011
a look toward Investing for growth:
Our bridge to a strong future
PSEG Outlook asked the leaders of PSEG’s three businesses and its chief financial
officer to give employees a brief overview of how they are looking at 2011.
CAROliNE dORSA
executive vice President and Chief
Financial officer, PSeG
RAlPh lAROSSA
President and Chief operating
officer, PSe&G
Bill lEviS
President and Chief operating
officer, PSeG Power
RANdy MEhRBERG
President, PSeG energy holdings;
executive vice President-Strategy
and Development, PSeG
4
PSEG OUTLOOK
Companies respond to tough times in many ways. Some ignore realities and emerge from troubled times
weakened and unable to capitalize on future opportunities – if they survive at all. others hunker down
and wait for bad times to pass. a third group – probably the smallest of the three – takes decisive actions
to strengthen their companies and also looks for opportunities to seize. Companies in this last group
actually can emerge from challenging times stronger. that is our goal for PSeG.
PSeG employees have responded to calls to curtail costs. as a result, we have a strong balance
sheet and financial strength that is well recognized by Wall Street. and we have put in place
our reductions without sacrificing our ethics or compliance standards, which need to remain of
paramount importance.
We certainly continue to face economic challenges and cannot let up in looking for ways to reduce
costs. however, the sacrifices that we have made give us flexibility to prudently explore growth
opportunities – in a disciplined and thoughtful manner.
these investments will be in our core energy business. they might include assets being sold by our
competitors, investments in our regulated utility, or opportunities in renewables. We will, of course,
make sure that any investments can generate a strong return for our shareholders. our continued
focus on minimizing costs and investing in growth will allow us to be among the companies that
grow and thrive in these tough times.
as we continue the organization efficiency initiative into 2011, we will drive to be first quartile in
all areas of our balanced scorecard. We have launched initiatives throughout the utility to improve
efficiencies that will bring us to first quartile in costs – an area in which we have lagged in the past.
We understand that making it to first quartile in this area puts pressure on other areas. For instance,
we may no longer regularly win the best-in-the-nation award for reliability, but we will remain among
the best. that is the challenge of the “balanced” component of the balanced scorecard.
one area we cannot compromise is our commitment to the safety of our employees and the
communities in which we provide service. employees should raise their concerns if they feel that safety
is being imperiled by cost decisions – or any decisions. not only can employees raise safety concerns,
they are expected to.
as part of our ongoing effort to execute our capital investment program, we will need to flawlessly
implement our investments in solar, energy efficiency, transmission and system improvements. We all
need to work together to deliver our investments on time and on budget.
lastly, in 2011, it is critical that we again show how PSe&G can help to achieve new Jersey’s public
policy goals, even as these goals are readjusted through the adoption of a new energy master plan.
Some of the factors that will determine PSeG Power’s success in 2011 – and, by extension,
PSeG’s – are beyond our control: the price of electricity, the strength of the economy, and the
weather. the first two factors clearly are acting against us, and the third is unknown.
With these challenges, it is critical that we excel in the areas within our control: first and foremost,
performing every task safely. also, it is imperative to deliver on our commitment to operational
excellence. We must get the most out of existing assets – avoiding unplanned outages and skillfully
executing planned outages.
We also need to extend the life of our plants and, where possible, increase heat rates and improve
reliability. in 2011, we will be focused on securing our nuclear license renewals, moving forward
with the early site permit process, and starting to construct new peaker facilities in new Jersey
and Connecticut.
With the nation’s most advanced emissions controls, mercer and hudson are now among our nation’s
cleanest coal plants. our challenge now is to run them well.
a key to the success of our initiatives will be managing our relations with elected officials and our
surrounding communities and ensuring that we create a work environment in which employees feel
valued and want to contribute to our overall success.
early in 2011, we will roll out the 2011 corporate strategic objectives to all employees. the objectives
will focus on operational excellence, efficiency and making strategic investments to grow our company.
in these economically challenging times, it continues to be important to invest in our future.
at PSeG energy holdings, we are looking for growth in both the short and long term. in a relatively
quick period, PSeG Solar Source has had great success establishing itself as a leader in the
solar field. in 2011, PSeG Solar Source will focus on new projects to grow our solar business and
generate new revenue streams in the short and medium terms. it is not easy to build a business
from scratch, and PSeG Solar Source will need to continue to draw on expertise from across the
company to move to the next level.
at Garden State offshore energy, we will continue our efforts to make offshore wind energy a
longer-term success. at energy Storage & Power, we will work to build the business case for our
cutting-edge technology.
2011 also will be a critical year in the public affairs arena. We will need to be nimble in addressing
the changes that are occurring in Washington D.C. and new Jersey – and just as nimble in
evaluating and taking advantage of emerging opportunities in the business marketplace.
The challenges of low electric and gas prices and an
uncertain economy require all of us to focus on excellence
and cost control. however, we are also pursuing attractive
growth opportunities to address the ongoing energy needs
of our customers and provide value to our shareholders.
Bottom line: We are investing now to grow the company and
strengthen our financial future.
These investments will total $6 billion in the next three
years and include transmission, solar, energy efficiency,
nuclear, and plant upgrades and expansion. They will
be our bridge – over today’s troubled waters – to
tomorrow’s successes.

PhotoS: mark lovretin
6
People R Talking
ThE FuTuRE OF TRANSPORTATiON PAid A viSiT TO PSEG
ON NOv. 5, WhEN ThE ChEvROlET vOlT uNPluGGEd TOuR
STOPPEd AT ThE COMPANy’S NEWARk hEAdquARTERS TO
ShOWCASE ThE 2011 ChEvROlET vOlT ElECTRiC vEhiClE.
STATE ANd lOCAl OFFiCiAlS, AS WEll AS A NuMBER OF luCky
EMPlOyEES, hAd ThE OPPORTuNiTy TO TAkE ThE ENERGy-
EFFiCiENT CAR FOR A TEST dRivE. PSEG OutlOOk ThEN ASkEd
EMPlOyEES ABOuT ThEiR OvERAll iMPRESSiONS OF ThE CAR.
hERE’S WhAT ThEy hAd TO SAy.
“the car drives great! the regen
Power recovery system is very strong.
it was very smooth when you took your
foot off the gas pedal and you could
hardly feel the system kick in. however,
it may lead you to use the brakes more.
i like the fact that it fits four people and
that it has a trunk. overall, it is very
roomy.”
– Bill Fenimore,
product manager,
PSE&G
“the Chevy volt rides very smoothly
and you don’t even feel that the car is
turned on. the controls are very smooth
and it has a nice instrument panel. the
lCD display is great; i particularly like
that it tells you how much battery life is
remaining and whether or not the car is
charging. overall, it is a very nice car.”
– vijay Pedapudi,
SAP module expert,
PSEG financial
management services
PSEG OUTLOOK
“i was a passenger during a volt test drive
and what impressed me was how quietly
the vehicle drove. i didn’t even realize it
was started! it was very comfortable and a
lot roomier than i expected.
– Janice Sutphen,
energy contract manager,
PSEG Power
“the volt is the best plug-in car that i have
driven in my career – and i have driven
many plug-in vehicles. With the volt, you
don’t have ‘range anxiety’ because it has
a gas back-up system. i also like the fact
that it is made in the united States.”
– John delMonaco,
manager-emergent
technology & transfer
– COmPilED by EriCa lEmbO
Collections Continued from page 1
for installment plans and to understand
the various payment assistance programs
available (www.pseg.com/help).
• When accounts are past due, the credit
and collections support team employs the
services of a vendor (Varolii) to make
automated phone calls to customers.
During the calls, customers can make a
payment with a live representative. Varolii
calls again about five days later if the
customer is still past due.
• When accounts are still unpaid, field
collectors visit customer homes to resolve
the outstanding bills. If no customer is
available or if the customer does not pay
the minimum due in accordance with
regulations, the collector disconnects
service. If there is no access to disconnect
the meter, the credit and collections
support team generates reports that
back-office collections uses to call landlords
and owners to gain meter access.
If there is still no access, the back office
creates an order requesting the electric
and gas divisions to disconnect service at
the pole or curb, respectively. Service is
reconnected once the required minimum
payment is made (the accompanying sidebar
outlines conditions under which service
continues without a minimum payment).
“Collection efforts are critical for the company,
yet can strain customers’ perceptions of us and
increase the volume of customer calls, visits and
complaints,” said Mike Kelly, operations managercollections.
“Collections work is not easy. I thank
everyone involved in the collections process for
working so hard, maintaining their composure
in tough situations, and treating customers with
empathy, dignity and respect.” O
Crisis Continued from page 1
team (ECMT) with an ICS-consistent structure
comprising 38 executives, officers and other key
leaders. Their job is to provide strategic direction
and support PSEG’s tactical response teams to
achieve an effective resolution.
To support the ECMT, an internal emergency
manager forum was created to include employees
from all operating departments. It provides the
opportunity to gain knowledge and keep current
on emerging aspects of emergency preparedness
and response. Members are exposed to internal
and external subject matter experts, which
allows for learning and networking. The forum
also provides in-depth training. “The forum has
enabled proven practices used at our Nuclear
location to be shared across PSEG,” says David
Burgin, manager-emergency preparedness. “It is
a cost-effective tool to leverage value in our quest
for operational and preparedness excellence.”
PSEG also has established an external crisis
management forum with other companies
(Merck, Con Edison and Prudential) to share
proven practices and knowledge, which improves
mutual preparedness at the executive level.
Overall, PSEG has a strong foundation for its
emergency preparedness and resiliency.
ICS training was made available in October
to employees responsible for facilitating the
management of emergency response. PSEG
executives were trained in the advanced-level
ICS at Newark’s FBI building. The FBI gave an
overview of its ICS process and presented two
threat briefings. Two PSEG tactical teams – the
Distribution Emergency Response Center and
tamesha Butler, special credit and collections representative-
Cranford, speaks with a customer about his past due account
and reviews all payment assistance programs available to help
him pay his winter heating bills.
CondITIonS for ConTInuEd SErvICE
If customers have not paid their PSE&G bills but
have notified PSe&G that they meet any criteria below,
their electric service continues as described. they still are
responsible for the debt accrued.
If a customer has a chronic condition requiring life-support
equipment documented on their account (doctor note required),
PSe&G will not – at any time – shut off electric service.
When a customer has a temporary medical condition
(doctor note required), such as recovery from recent
surgery, service will not be shut off for the duration of the
medical condition.
There are no service shutoffs for protected customers
between nov. 15 through march 15, or at any time of year
that the temperature reaches as high as 95 degrees F or as
low as 32 degrees F. Protected customers are those who
receive financial assistance (including liheaP and lifeline),
are senior citizens (65 years old or older), have a family
member in active military service, or have a temporary
financial hardship (such as those recently unemployed).
Nuclear Emergency Response Organization
– provided an overview of their respective
emergency response capabilities.
BA&R has facilitated a company-wide ICS
certification training program for designated
PSEG employees. To date, several courses have
been held at the entry-, mid- and advanced levels
at no cost to PSEG. “While PSEG is not mandated
to be NIMS/ICS compliant, we are compatible
with ICS for a more effective response,” said
advanced-level iCS training recently was held with employees
(l-r) tom Coates, Doug mcGinty, tim Weeks, kevin Carr, Dave
Burgin, maryJane Jacobson, rich Dwyer, Joanne Graziano, mark
Devoti, laura Quille, nicole Gagliardotto and Frank mcCormick.
external trainers (3rd and 4th from right) were Bruce tynan,
regional fire coordinator, n.J. Division of Fire Safety, and Jack
alderton, fire training coordinator, morris County Firefighters &
Police training academy.
Frank McCormick, manager-asset protection
and preparedness. “We believe that developing
strong relationships and coordination with
governmental agencies is fundamental to a
successful emergency response.” O
Photo: mark lovretin
Photo: mark lovretin
around pseg
PSEG law department cited for pro bono,
community service
the New Jersey Law Journal has recognized PSeG’s law department
as one of the top five “legal Departments of the year.” the PSeG team
was cited for its pro bono and community service program, which
has it engaged in an ongoing effort to encourage all of the company’s
attorneys, legal professionals, and support staff to participate in public
service activities, which are heavily centered in newark.
the award cites PSeG’s involvement in and ongoing efforts to
participate with charitable and religious organizations that benefit
from the PSeG law department’s commitment to helping others.
these organizations include the march of Dimes, PSe&G’s Children’s
Specialized hospital, essex County Bar Foundation, Gray Charter School,
Susan G. komen Foundation, Connie Dwyer Foundation, Girl Scouts of
america, and the american Jewish Committee.
eight members of the PSeG law department attended the awards
ceremony, which was held the evening of nov. 11 at the newark Club.
lon Bouknight, PSeG’s executive vice president and general counsel,
accepted the award on behalf of the group.
the other corporate counsel offices making up the top five chosen
for the new Jersey law Journal’s first annual “legal Departments
of the year” award included hartz mountain industries, for in-house
legal work management; alcatel-lucent uSa, for outside counsel
management; Prudential Financial, for diversity and quality of life; and
the roche Group, for optimal use of technology.
– melissa Ficuciello
SERviCE AWARdS
december 2010
40 years
James E. Boal, fleet maintenance – moorestown
larraine M. Buntin, maplewood testing services - mtS
Nita d. desai, Palisades division – Secaucus
Barbara B. Saxe, energy supplier services – G.o.
Stanley J. Solowski, projects & constr. mgmt. – 744 Broad St.
35 years
Barbara A. O’Neil, regional public affairs – G.o.
Michael J. Spitzmiller, Central division – Somerset
30 years
John h. Anderson, appliance services – orange
Robert P. Berger, Jr., SmD – hadley rd.
Tina A. Boettcher, trn plt & eng-srv & sup – hadley rd.
Robert J. Bramble, trenton gas
Richard l. Bulizak, Plainfield gas
howard T. Bunting, iii, Southern division – lawrenceville
Steven M. Campbell, Southern division – moorestown
Scott M. Campbell, Jersey City gas
Anthony M. Cappello, audubon gas
Michael F. Cardella, Burlington generating station
Jeffrey G. Carter, Southern division – moorestown
donald E. Cherry, appliance services – Summit
Richard Chesler, Plainfield gas
Stephen Chmieleski, mechanical – CmS
deborah A. Chudzinski, Southern division – lawrenceville
Bruce P. Clark, audubon gas
Paul E. Coar, hudson generating station
Manuel A. Costa, linden generating station
Mark W. dooley, electrical division – mtS
John R. doughten, Camden gas plant
James P. Farley, appliance services – Summit
Jeffrey R. Farrington, audubon gas
Timothy A. Fenimore, audubon gas
victor T. Forman, Burlington gas
horace A. Fowler, iii, audubon gas
Michael T. Gattone, Burlington gas
dennis h. Ghaul, PSeG Power tech training – hadley rd.
Phillip Graziano, appliance services – oradell
deborah B. Griscom, strategic sourcing – Salem
Stephen J. hamlin, Southern division – moorestown
deborah F. hearns, gas trading – G.o.
Craig M. hensal, outside plant constr – hadley rd.
Ronald B. hunter, Southern division – moorestown
Richard C. Johnson, Southern division – lawrenceville
William d. Jordan, linden generating station
kevin G. Jordan, Southern division – lawrenceville
Gregory J. keefe, Southern division – lawrenceville
Ricky l. kerstetter, mercer generating station
William G. kostecki, GSoC – G.o.
Timothy J. lalli, PSe&G SCm – Summit
Arthur A. lein, fleet maintenance – oradell
Astrogildo N. lopes, orange gas
Thomas luizzi, Jr., harmon Cove district office
John P. Mallon, appliance services – Summit
Gary S. Marchut, metropolitan division – Clifton
Nelson Mateo, Southern division – moorestown
Noel E. Mayer, SmD – hadley rd.
Todd McCabe, metropolitan division – Clifton
donald C. McGrath, PSeG nuclear
Patrick J. Mchugh, audubon gas
Peter T. Mendez, Plainfield gas
david M. Miller, Palisades division – Secaucus
Gregory A. Molnar, Southern division – lawrenceville
Jose l. Obarrio, trn plt & eng-asset eng – hadley rd.
Joseph W. Ormsby, fleet maintenance – lawrenceville
Francis Ranaudo, metropolitan division – Clifton
Thomas J. Redner, harrison gas
voshell R. Smith, Southern zone – moorestown
Joseph C. Sousa, Jr., Southern division – lawrenceville
Robert h. Sutphin, PSeG Power – ny
25 years
John R. Antuzzi, Southern division – moorestown
Paul v. Bogart, metropolitan division – irvington
Edward J. Gee, PSeG nuclear
Christopher R. Griffith, Central division – Somerset
James h. harris, mercer generating station
William k. hempstead, metropolitan division – Clifton
david E. kelly, PSeG nuclear
Roland E. kerstetter, mercer generating station
kevin C. kuebler, Central division – Somerset
Raymond A. lembo, Central division
Todd lloyd, mercer generating station
Joan C. Macdonald, PSeG resources – G.o.
Mark W. Mcdonald, Southern division – moorestown
Patrick T. McGuire, Central division – Somerset
Thomas B. O’Connor, oradell gas
Cheryl Perez, large customer support – Springfield
Michael J. Powell, Southern division – moorestown
Michael E. Powers, trn plt & eng-overhead – hadley rd.
Norman E. Romberger, Southern division – moorestown
John h. Sievert, Central division – elizabeth
George A. Stahlberger, PSeG nuclear
Rocco d. Tropeano, Central division – Somerset
Christopher P. yoka, hudson generating station
Norman Townsend, Jr., audubon gas
Ronald E. Wharton, system ops – G.o.
Thomas E. Woods, Southern division – moorestown
Stephen J. Worob, Jr., trenton CSC
Jonathan J. Zechmeister, essex generating station
January 2011
the New Jersey law Journal
recognized PSeG’s law department as
one of the top five “legal Departments
of the year.” Standing (l-r) are marlene
Perfeito, leilani holgado, Jeanette
Carlo, Sheree kelly, angelique nelson,
Don leibowitz, and Jim Foran; seated
(l-r) are former new Jersey Supreme
Court Justice Peter verniero and
lon Bouknight.
45 years
louis A. demian, Palisades division – Secaucus
40 years
William R. Benedetto, newark CSC
William l. Blakey, Power proj estimating – G.o.
Bruce P. hicks, mechanical division - mtS
Thomas F. Jacobellis, Jr., cust srvs-Central – roseland
lewis Ogonowski, mechanical division – mtS
Charles A. Stuht, appliance services – oradell
debra Thomas, Passaic CSC
Patrick M. Wallace, Camden CSC
35 years
John d. Chrabasz, CmS
Robert J. harvey, Palisades division – Secaucus
harry l. Miller, Jr., PSeG nuclear
Mark P. O’Neill, Sewaren generating station
Peggie A. Pointer, it – G.o.
Ronald h. Rozanowski, kearny generating station
30 years
Carmen A. Alessi, new Brunswick gas
Pedro Betancourt, appliance services – Jersey City gas
Robert W. Breland, SiaC
Garry Cutts, Southern division – moorestown
Michael F. daugenti, Central division – Somerset
Ronald R. depew, Camden gas plant
PSE&G named Mid-Atlantic’s
most reliable electric utility
PSe&G once again demonstrated that reliability is a top priority by being named
the mid-atlantic region’s most reliable electric utility. For the ninth year in a row,
the utility received the reliabilityone award for the mid-atlantic region. Don
Weyant, PSe&G regulatory leader, accepted the award at a ceremony on
nov. 17 in Washington, D.C. the reliabilityone awards are given annually by
Pa Consulting, an industry benchmarking group, to honor the utilities with the most
reliable electric systems. more than 100 utilities participated this year. San Diego Gas & electric won
the national award.
“receiving the reliabilityone award for the mid-atlantic region is an outstanding achievement
and a testament to the hard work and dedication of our employees,” said PSe&G President and Chief
operating officer ralph larossa. “i am proud of our employees and of our reputation and ability to
continually deliver safe, reliable, economic and green energy to our customers.”
“investing in our transmission and distribution systems and our workforce pays off,” said John
latka, vice president-electric operations. “We have an outstanding group of employees who work
tirelessly to ensure that our electric system operates reliably and that our customers have the
electricity they need to power their homes and businesses. as i’ve said before, the utility did not earn
this award – our employees did. Congratulations and thank you!”
PSe&G’s revenue integrity department also received the Serviceone revenue assurance Balanced
Scorecard achievement award for achieving the strongest revenue assurance scorecard results in the
areas of work volume, operational success, and cost. Serviceone awards recognize companies for
providing exceptional service to their customers and achieving top-quartile performance.
– Deann muzikar
FYI: SERVICE AwARDS, RETIREMENTS, IN MEMORIAM i
daniel T. devlin, new Brunswick gas
Richard d. diBari, Jr., Palisades division – Secaucus
Robert l. dickerson, Central division – Somerset
leonard R. donofrio, orange gas
Nicholas Esposito, Jr., SCm – audubon gas
Joseph Fierro, Jr., metropolitan division – Clifton
Patrick k. Foster, Palisades division – hackensack
Rosland Gainey, Central division – Somerset
John J. Gaylord, Jr., fleet maintenance – edison
Scott T. Girandola, appliance services – orange
larry hagens, Palisades division – hackensack
Richard W. halter, PSeG nuclear
George h. higgins, Fossil design engineering – G.o.
Edward A. hunter, mercer generating station
John C. kenny, linden generating station
Stephen M. kozlowski, Central division – elizabeth
Robert T. kunz, Jr., Central division – new Brunswick
Nicholas Mangarella, new Brunswick gas
Antonio Mannarino, asset reliability – G.o.
Joseph G. Martillotti, Southern division gas – Burlington
Gary M. Matera, PSeG nuclear
Maynard M. McAllister, PSeG nuclear
Glenn J. Mellot, PSeG nuclear
Christopher Plummer, new Brunswick gas
Steven A. Pompper, PSeG nuclear
Frederick G. Priestley, PSeG nuclear
Alan G. Ratkowski, Clifton gas
Amedeo R. Restaino, hudson generating station
Raymond J. Sabatini, Central division – Somerset
Raymond Santory, CmS
kenneth R. Sarte, Jr., fleet maintenance – Plainfield
Marie d. Schemmer, SiaC
Robert J. Schnur, PSeG nuclear
daniel E. Skowronski, Bergen generating station
Michael k. Sterling, new Brunswick gas
Jaroslaw i. Sydor, SiaC
liddia A. Thigpen, PSeG Power – Ct
Russell J. Tricoli, Palisades division – Secaucus
Teri R. Williams, it – Salem
25 years
douglas R. Anders, appliance services – oakland
Phillip G. Burke, harrison gas
Susanna W. Chiu, bus. dev. & policy – G.o.
luis S. Fontaina, Jersey City gas
Robert l. Foster, Jr., lCS South – lawrenceville
John C. harris, it – Salem
Edward i. hertzberg, audubon gas
kevin M. kelly, harrison gas
Thomas A. king, Palisades division – Secaucus
Alberto Maldonado, hackensack CSC
Christopher M. Mayer, Palisades division – Secaucus
Terrance J. Mckenna, Southern division – lawrenceville
Robert M. Mendick, Jr., mercer generating station
Brian d. Moore, appliance services – Clifton
Glen Nicoletti, Palisades division – hackensack
Ronald W. Parzyck, Southern division – moorestown
Gerard Piscopo, Jersey City gas
Peter R. Reyes, PSeG nuclear
William R. Riker, hudson generating station
donald W. Robinson, SmD – hadley rd.
Mark A. Roessner, Central division – Somerset
Anthony C. Sarlo, Jr., Southern division – moorestown
Brad S. Solomen, Southern division – moorestown
RETiREMENTS
Stephen h. Bachofen, Jr., appliance services – Burlington
John R. Bendixsen, eo&S project controls – G.o.
William C. Brockley, PSeG Power – ny
davonne Burks, cust ops administrative – G.o.
Willam Burns, business assurance – G.o.
Joseph J. Carlo, cash management – G.o.
Gail davis, cust relations & community – G.o.
leslie domond, survey & mapping – G.o.
lina M. dowsey, it – G.o.
William A. Emmrich, Jr., Sewaren generating station
Michael C. Freda, mechanical – mtS
deborah A. Johnson, appliance services – oradell
dennis J. kizielewicz, SmD – hadley rd.
John P. Martin, PSeG Power – ny
dennis E. Moshopoulos, Sewaren generating station
david J. Murray, Power nerC compliance – G.o.
Antonio S. Pena, Jersey City gas
kathleen Rohe, utility financial planning – G.o.
Thomas l. Silagyi, Sewaren generating station
Frederick C. Spratt, SiaC
i N M E M O R i A M
Howard T. Berk
Pamela S. Bledsoe
Robert F. Dickerson
John J. Fanning
Michael D. Freda
Rostyslaw Halaburda
Patricia A. Heinz
Edward J. Marfan
C. Mascino
Thomas J. Meyer
John Milazzo
Robert D. Millar
Gerald E. Mount
Raymond R. Mroczek
Francis C. Orem, Jr.
Francis M. Pinkava
Benny E. Plunk
Michael J. Rainone
Andrew J. Rapos, Jr.
Raymond B. Roberts
Felix J. Sirgedas
Shelton Wyche
Vincent J. Yearly
Note: Due to a reporting error, some names were inadvertently
added to the November 2010 Service awards list when they should
not have appeared until November 2011. in addition, the following
names were inadvertently omitted from the November 2010 Service
awards list last month. We apologize for any confusion.
45 years
Richard W. Wernsing, asset reliability – G.o.
40 years
Joseph Martucci, utility bus. strategy & benchmarking – G.o.
30 years
virginia C. Biggins, internal communications – G.o.
Stephen S. Boyer, PSeG nuclear
Michael J. deloreto, Bergen generating station
Michael k. Gallagher, it engineering – G.o.
dorindo Migueis, PSe&G SCm – Secaucus
Stephen h. Moss, fleet maintenance – lawrenceville
William P. Wenzel, PSe&G SCm – Jersey City
25 years
John P. Michels, gas trading – G.o.
Mario N. Raddi, PSeG nuclear
Brian E. Sebastian, Fossil safety & training – G.o.
FYI is compiled monthly by the PSEG human resources
department. if you have any questions or comments about
the information found here, please contact doug homan at
973-430-6528 or via e-mail at douglas.homan@pseg.com.
PSEG OUTLOOK
7

Dollars & Sense
Understanding market
heat rates
By niCole SWan
in the world of unregulated power production, there are
numerous measures used to assess internal operations, as well
as gauge a company’s performance as compared to the market.
internally, PSeG Fossil has a scorecard measure called “operating
unit heat rate.” unit heat rates measure unit efficiency and are a
ratio of the quantity of fuel that a unit uses to the quantity of power
produced. Whether it is a coal, peaking or combined-cycle unit, the
lower a unit’s heat rate, the more productive that unit is running.
meanwhile, a market heat rate is a ratio measurement used
in the electric industry to assess power hedging and trading
opportunities. the market heat rate is expressed in British thermal
units (Btu) per kilowatt-hour (kWh). it is calculated by dividing the
average price of fuel ($/mmBtu) by the average price of power
($/mWh) in a specific geographic area.
Just as a generating unit’s heat rate determines that unit’s fuel
efficiency, market heat rates measure how efficiently the market
turns fuel into power.
market heat rates gauge how much profit a particular unit can
potentially earn in the market. if a market heat rate is higher than
a unit’s heat rate, that unit is operating more efficiently than the
market and, consequently, is more likely to be dispatched and make
a profit. Conversely, when the market heat rate is lower than a
unit’s heat rate, the unit is less likely to be used or make a profit.
PSeG Power measures its units’ heat rates, as well as market
heat rates, in PJm and in other markets in which the company
operates. PJm interconnection is the regional transmission
organization (rto) that manages the mid-atlantic regional
transmission system and the wholesale electricity market.
ideally, a PSeG Power generating unit’s heat rate is lower than
PJm’s current market heat rate. For example, if PJm’s market heat
rate is 9.0 mmBtu/mWh, gas unit 1 has a unit heat rate of 7.5
mmBtu/mWh, and gas unit 2 has a unit heat rate of 10.0 mmBtu/
mWh, then gas unit 1 is operating more efficiently than the market
and will experience a greater profit margin, while gas unit 2 will not
be called to operate.
PSeG Power strives to increase the amount of energy produced
for the same amount of fuel to reduce its cost structure, support
its commitment to the environment, and remain – overall – a more
competitive energy company. through continued maintenance of its
generating stations, PSeG Power ensures that all components are
functioning as designed and that the units will perform at maximum
efficiency.
Comments on this column are welcome. Please send
your feedback and ideas to nicole.swan@pseg.com.
newark, nJ
PerMit no. 1578
P a i d
U.s. Postage
standard Mail
Presorted
LetteroftheMonth
October 1, 2010
Mr. Ralph LaRossa
President, PSE&G
Newark, N.J. 07102
Dear Mr. LaRossa,
Hello, my name is Nancy Doyle. I just wanted to let you know that Kevin Personette, Dan Juliano,
and Jason Silva just restored power for my neighbors. They were extremely nice, polite and
efficient. My huge oak tree fell after a storm and downed the power lines to two of my neighbors’
homes. These men could not have been nicer. They eased my guilt and my neighbors’ anxiety
– late into a Friday night. I would give them a raise and a bonus, but I can’t. I offered them a well-
deserved tip, but they refused. This note of thanks is all that I can offer.
You have great employees. Thank you.
Sincerely,
Nancy Doyle
Westfield, N.J.
elizabeth electric employees kevin Personette (left) and Jason Silva, along
with Dan Juliano (not pictured), jumped into action to help troubleshoot
and restore power to a neighborhood after a large tree fell during a storm,
disrupting power to surrounding homes.
S
No ta b l e “ Quote
“This is welcome news – a promising step forward. Secretary Salazar should
be commended for taking this initiative to reduce red tape and help create an
environment that supports clean energy investments.”
– Scott Jennings, PSEG Global president, speaking about Secretary of the Interior Ken Salazar’s announcement of an initiative to
facilitate siting, leasing and construction of offshore wind projects off the Atlantic Coast.
“