PSEG Power's diversity encompasses the fuels and technologies that power its plants and the market segments in which it competes. With a balanced mix of nuclear, coal, natural gas-and oil-fired units, PSEG Power can supply power economically as demand shifts throughout the day and year.

PSEG Power has a multifaceted, targeted expansion program. It is growing through capacity additions at existing sites, the development of new sites as well as through acquisitions. In New Jersey and New York, projects under construction and in advanced development will add more than 2,600 megawatts of new generating capacity while retiring approximately 1,000 megawatts of older, less efficient capacity. In 2001, PSEG Power also expanded its nuclear operations by completing the acquisition of the assets formerly owned by Conectiv in the Salem, Hope Creek and Peach Bottom generating stations — adding a total of 545 megawatts of electric generating capacity at an attractive price, and further solidifying the nuclear component of its core asset base.

In the Albany, New York region, PSEG Power is moving ahead to redevelop a 400-megawatt steam station, acquired in 2000, into the new 750-megawatt Bethlehem Energy Center—replacing 1950's technology with the cleanest and most efficient gas-fired technology available. The new plant will lower air emissions by 98%, reduce the use of Hudson River water for cooling by 99% and improve electric system reliability. PSEG Power also filed an application with the New York State Public Service Commission to construct and operate an eight-mile dedicated generator lead that would enable it to deliver electric capacity directly to Manhattan from its Bergen generating station in New Jersey. The project is proposed for 2003 operation.

PSEG Power is also expanding into the Midwest. In 2001, the company began construction of an 800-megawatt plant in Ohio and a 1,150-megawatt plant in Indiana.