PSE&G is seeking approval from regulators to test advanced metering infrastructure technologies that could help customers reduce energy usage and costs. The technologies would provide customers with real-time energy use data to enable conservation, especially during peak demand times. PSE&G plans to install different metering technologies in over 32,000 homes and businesses in Passaic County to evaluate their performance under various conditions. The results will help determine the best approach for New Jersey to reduce energy use and carbon emissions.

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December 12, 2007
PSE&G SEEKS APPROVALTO TEST ADVANCED METERING TECHNOLOGIES
AS ADDITIONAL WAY TO COMBAT CLIMATE CHANGE
New technology would empower customers
to save money as they conserve energy
Public Service Electric and Gas Company (PSE&G) today announced it has requested approval from
state regulators to deploy and test advanced metering infrastructure (AMI) technologies, capable of
enabling customers to monitor energy use, conserve energy and lower their costs during periods of
peak electric demand. The technologies will also be useful in reducing carbon emissions that
contribute to global climate change.
Speaking at the New Jersey Energy Summit in New Brunswick today, PSE&G President and COO
Ralph LaRossa said the company has filed a petition with the New Jersey Board of Public Utilities
(BPU) that could pave the way for the AMI deployment and test as early as next summer. AMI has
these key elements: smart meters that collect interval meter data, a two-way communications
component that transmits information to and from the utility, and a meter data management system
that stores and manages the information received.
“We are proposing this program to explore yet another way for the company and its customers to
contribute to the state’s aggressive energy conservation and carbon reduction goals,” LaRossa said.
“The key to conservation is enabling customers to have the information they need to make the right
choices. AMI provides real-time information, and can reduce energy usage remotely during times of
peak demand. In the absence of an industry standard, this technology deployment will enable us to
evaluate the most appropriate AMI strategy to pursue.”
PSE&G will compare performance and cost differences of three AMI technologies under different
operating conditions. The technologies are: Mesh Network, Radio Frequency (RF) Hybrid (Point-to-
Point) and Broadband over Power Line (BPL). The company will install 32,500 advanced meters in
homes and businesses of customers in the Passaic County towns of Wayne, Paterson, and Totowa. In
addition to testing the technology in residential, commercial and industrial settings, the initiative will
determine how the various systems perform in urban, suburban and sparsely populated neighborhoods
that have a mix of indoor and outdoor meters, a high rate of radio frequency interference and varied
terrain.
PSE&G has requested expedited approval from the BPU to install equipment in customers’ homes
and businesses and begin transmitting customer data beginning next summer. If approved by the
BPU, PSE&G proposes to spend about $15 million to install the advanced metering infrastructure for this
deployment in Passaic County.
As proposed in the filing, the results of the deployment will be analyzed by PSE&G and
representatives of BPU staff, the Division of Rate Counsel, large industrial users, and members of
environmental, consumer advocate and academic groups. A report outlining the strategic and public

2. policy benefits will be provided to the BPU to assist the Board in evaluating and establishing a
universal AMI approach in NJ. If the initial testing proves successful, LaRossa said PSE&G would
expand the technology trial to a larger number of customers in its service territory.
In a recently concluded trial of a related initiative, called myPower, PSE&G tested customers’
reactions to a pricing program and technology that told them when energy was most expensive so
that they could reduce their energy consumption and shift their energy usage to lower price periods.
Customers participating in the program who were provided with thermostats that responded
automatically to pricing signals were able to reduce summer peak electric demand by about 47
percent on peak days, and achieved a 3-4 percent energy savings during the summer months. A
majority of participants saved money on their energy bills. Participants also reported that they believe
that utilities should offer more programs like myPower, would recommend the program to a friend or
relative, and believe that programs like this will benefit the environment.
In addition to helping customers conserve energy and money, AMI provides a host of other benefits to
the utility and its customers, including faster and more accurate detection of power outages, faster
activation of electric service, and no estimated bills.
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