Left: PSEG Global augmented its presence in Peru in 2001 by purchasing Electroandes, an electric generation company that owns and operates several hydroelectric facilities.

Right: PSEG Global has a significant electric and gas distribution business in South America. This year it purchased the SAESA Group, Chile's third largest distribution company serving more than 625,000 customers.

In Europe, the focal point of PSEG Global's growth strategy is Poland, where many opportunities are arising as the country continues with the privatization of the energy industry. PSEG Global has begun constructing Elcho, a combined heat and power plant located in Chorzow in southern Poland. Scheduled to come on line in 2003, the plant will replace the country's oldest power plant with state-of-the-art clean-burning technology. It will generate the equivalent of 500 megawatts of steam heat as well as 220 megawatts of electricity.

In India, PSEG Global brought on line two generating stations in 2001 — both located in areas of the country that have been particularly receptive to overseas investment. In Tamil Nadu state, in southern India, PSEG Global is leading an international consortium as one of the owners, and operator, of the 330-megawatt Pillai Perumalnallur (PPN) combined-cycle facility. PSEG Global's second project in the country — the Tanir Bavi 220-megawatt combined-cycle plant in Karnataka state — also began operation in 2001.

In China, PSEG Global is building a sustainable business through its partnership in the Meiya Power Company (MPC). In 2001, MPC began full commercial operation of the Fushi hydroelectric power plant. In addition to supplying power to meet demand in the city of Liuzhou, this station will improve irrigation and navigation in the area. MPC also began construction of its first project in Taiwan, a 480-megawatt, combined-cycle power plant.

PSEG Global is carefully targeting opportunities resulting from privatizations in other regions around the world. In Oman, PSEG Global is leading a consortium that will build, own and operate a new, state-of-the-art 200-megawatt, gas-fired electric generating facility — and also enlarge as well as enhance the transmission and distribution system of the country's southern region. This privatization project is the first involving an integrated electric utility in the Middle East. A common thread linking PSEG Global's diverse projects is a commitment to providing innovative energy solutions that improve the quality of life. In Chile, PSEG Global recently began operation of the country's first wind-powered electric generation facility — helping meet the electric needs of a rural area.

With strong earnings and a growing base of generation and distribution facilities, PSEG Global is transforming areas around the world by meeting essential needs for safe, reliable power. PSEG Global's energy projects are protecting the environment and helping to raise living standards in every location where it operates.

PSEG Global's operations are complemented by PSEG Resources, a PSEG subsidiary that manages a strong, diverse portfolio of more than 60 separate investments in energy infrastructure around the world. Utilizing in-depth industry knowledge to invest in a wide spectrum of asset types, PSEG Resources focuses on generating long-term, stable earnings.