PSEG Global has also been active in other North American markets outside PSEG Power's targeted region. In Texas, PSEG Global completed and began operating in 2001 two 1,000-megawatt power plants in which it has a 50% interest. It was also able to quickly seize a growth opportunity in California. With that state facing severe electricity shortages, PSEG Global and a joint-venture partner signed agreements with state officials to add 340 megawatts of new generating capacity at several locations. The first addition, the 90-megawatt Hanford Energy Park Peaker project, was brought on line in just 87 days—a North American record.
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PSEG is a major player in the nation's wholesale electric power markets. Its PSEG Power subsidiary has one of the largest and most diverse generation fleets in the eastern United States.
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To create additional value from its growing base of generation assets, PSEG Power has developed a highly profitable energy trading operation — the largest domestic operation of its type with a regional focus. This operation — PSEG Energy Resources & Trade — markets the company's generation output. It utilizes a variety of products to integrate fuel procurement, power generation and trading. Unlike many other trading operations, PSEG Energy Resources & Trade focuses on asset-backed trading. It concentrates its trading activity in PJM and the immediately adjacent electric power pools. As PSEG Power adds generation, PSEG Energy Resources & Trade is growing as well — expanding its geographic coverage and the mix of energy products traded. This mix was recently augmented as a result of the transfer of PSE&G's gas supply and storage contracts to PSEG Power.
Owning power stations is only half the equation. These stations must be available to operate, and in 2001 PSEG's ran very well. Higher output and availability in each of the last four years have been fundamental to PSEG's transformation into a competitive, dynamic and market-oriented enterprise. This performance was particularly crucial during this summer's record-setting heat in New Jersey, when every plant in the company's regional generation fleet was available to run.
PSEG Power's nuclear operations have continued to advance when measured by key safety and operational benchmarks. The Salem, Hope Creek and Peach Bottom generating stations achieved a combined capacity factor of 91% in 2001 — a company record that improved on the previous year's record of 88%. The average length of refueling outages also continued to decline. The recent refueling at Hope Creek station lasted only 24 days—a company record that was coupled with several site-wide safety records in the areas of industrial and radiological safety.
PSEG's nuclear units have long had a comprehensive security program in operation. Additional security measures were implemented following the terrorist attacks of September 11, and close coordination is maintained with governmental authorities on security issues.
A solid, diverse base of generating stations, a strong trading operation and project development expertise give PSEG Power the ingredients to grow — and to build on its strong position as a major provider of America's power needs.
