PEG Public Service Enterprise Group Inc

BPU approval of $694 million in infrastructure investments will stimulate New Jersey's economy, ensure reliable service NEWARK, N.J., April 16 /PRNewswire-FirstCall/ -- With today's approval of its plan to invest $694 million in accelerated electric and gas infrastructure projects, Public Service Electric & Gas Company (PSE&G) began to hire the first of 900 new utility and contractor positions to be created during the next two years. The capital infrastructure investment program, approved today by the New Jersey Board of Public Utilities (BPU), is in response to Gov. Jon Corzine's call for increased capital spending to create jobs while ensuring that customers continue to receive safe, highly reliable electric and gas service. The company's original proposal, filed on January 22, would have resulted in $698 million of capital investments. The amount approved today was part of an agreement with the BPU staff and the Department of the Public Advocate, Division of Rate Counsel. The BPU today approved several other utility plans as well. "PSE&G has always played a strong role in New Jersey's development and economic health," said Ralph LaRossa, president and COO of PSE&G. "There's no question that we can once again help the state get through one of the most challenging times in its history. We're ready to get to work." LaRossa said the utility will make every attempt to use local suppliers and contractors, in addition to its own skilled workforce. "These projects were carefully reviewed against strict criteria," said BPU President Jeanne Fox. "By expediting spending on identified infrastructure needs, these projects can provide important support for our economy now, as requested by Gov. Corzine, while ensuring a reliable and secure energy supply for future economic growth. In addition, by putting many of these projects out to bid in a slow economy, this work can be completed at a lower cost to ratepayers." PSE&G has also proposed a $190 million Energy Efficiency Stimulus Program that would encourage conservation and create about 650 green jobs. If approved, it would expand an existing program that offers energy audits, programmable thermostats and other measures to residents in the state's urban centers, as well as investment-grade audits to hospitals and businesses, providing additional jobs for contractors. A BPU decision is expected in June. Under the investment approved today, PSE&G will begin work on 38 electric and gas initiatives. About 900 skilled utility and contractor positions would be created in New Jersey during the next two years from this accelerated capital investment. Electric system improvements to require 600 jobs The utility will spend $421 million in electric system capital improvements, including the $50 million replacement of mercury vapor municipal street lighting with more efficient induction fluorescent lighting. PSE&G is the first in the nation to offer the new "green" fixtures, which emit more light, last four times longer and cost less to operate than older models. PSE&G will now replace 96,000 street lights in two years, resulting in immediate cost savings to municipalities. Other electric system work will include replacement of aged underground cable facilities, network transformers and relays, and the upgrading of overhead cable, transformers and substation equipment. About 600 new utility and contractor positions are expected to be created to perform this work. Gas system improvements to result in 300 jobs During the next two years, the utility will spend about $273 million to replace and reinforce aging gas cast iron and bare steel mains and services, and upgrade metering and regulating stations. The work will require the utility to begin hiring PSE&G gas construction employees between April and June. Additional jobs will be filled by outside contractors once bids are awarded. The gas distribution stimulus work is expected to provide about 300 new PSE&G and contractor jobs. These accelerated investments in the utility's electric and gas distribution infrastructure will ensure that the company's systems, many of which are in mature communities, continue to provide safe and reliable service. PSE&G will recover the costs of the programs through an annual adjustment to electric and gas rates, which would increase the typical residential customer's bill by less than 1 percent, or about $9 per year. All PSE&G positions to be filled will be posted on http://www.pseg.com/ in the Careers section. Individuals interested in working for the company are encouraged to regularly check the site as new jobs are anticipated to be added. Public Service Electric and Gas Company (PSE&G) is New Jersey's oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state's population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG), a diversified energy company (http://www.pseg.com/). DATASOURCE: Public Service Electric & Gas Company (PSE&G) CONTACT: Karen Johnson or Bonnie Sheppard, +1-973-430-7734 Web Site: http://www.pseg.com/

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