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2007 EPIC Award Recipient

EXEMPLARY VOLUNTARY EFFORTS (EVE) AWARD honors federal contractors that have demonstrated through programs or activities, exemplary and innovative efforts to increase the employment opportunities of employees, including minorities, women, individuals with disabilities, and veterans.

PSEG is an energy and energy services company with four major subsidiaries: PSEG Energy Holdings, the parent of PSEG's other unregulated international and investment businesses, Public Service Electric and Gas, a regulated electric and gas utility, PSEG Power, a US power producer, and PSEG Services Corporation. Public Service Electric & Gas Company (PSE&G) is one of the nation's largest combined electric & gas utilities and New Jersey's oldest publicly owned utility company. It services more than 1.6 million gas and 2 million electric customers in the State of New Jersey, covering 2,600-square-miles. PSE&G employs 6,400 people and its revenues total $4 billion.

Description of Innovative EEO Programs/Community Outreach:

PSEG, as well as the entire energy industry, faces a shortage of skilled workers as baby boomers are beginning to retire.

To meet this challenge, PSEG developed the Energy Utility Technology Degree Program in 2003. The program's business objective was to develop a continuous pipeline of diverse talent for employment in entry-level technical trade positions at PSE&G and establish a commitment to education that would generate renewed interest in technical trade careers. This program, a partnership with Mercer County Community College, combines classroom instruction with technical apprentice-level training at PSEG's Edison Training and Developmental Center. PSEG employees also mentor students on the job and in the classroom. It has been endorsed by three participating unions: the O.P.E.I.U., Local 855 and the I.B.E.W.

Students take five utility courses and complete two paid internships at the company's field locations, earning from $15.00 to $19.00 per hour. The program also offers the students training in safety, resume writing, interviewing and employability skills. The program raises the competency level of new employees by providing a new way for qualified students to combine classroom work with hands-on apprentice-level training prior to being hired. Our first-line supervisors and managers enhance their coaching and mentoring skills as they gain experience working with and coaching a more diverse workforce. Upon successful completion of the program, a student may be offered employment at PSEG.

To facilitate and encourage participation in the pre-employment tests associated with the technical positions, the Utility Degree Program successfully implemented the following procedures: testing information and practice tests are available on-line, testing information is provided in the student course book, a program administrator mentors students on test taking, the establishment of special test scheduling, a reduction in the wait time between retaking the test to 3 months (down from 6 months), practice tests are administered at the high school level so students can become familiar with the test and a math requirement standard was also incorporated into the program to address the gap in math skills.

The program is the process of expanding corporate wide. The program began in 2003 in PSEG's gas and electric utility division (PSE&G) with one community college (Mercer County CC). Since then it has been expanded to PSEG Power, and PSEG Nuclear is currently developing their version of the program.

This program provides a pipeline of diverse talent for the organization. More than 54% of the students hired through the technical trade program are minorities and 4% are women. Prior to its implementation, new hires were 25 % minorities and 1% women. Overall, PESG hired 80% of the program's graduates. The 81 students currently enrolled in the two-year program are the most diverse group to date, with 67% minorities.

The program has been recognized as a best practice by:

• Chartwell's Best Practice in Utilities and Energy Companies
• New Jersey local/regional Chamber of Commerce.
• John J. Heldrich Center for Workforce Development Rutgers, The State University of New Jersey
• U.S. Equal Employment Opportunity Commission (EEOC) Freedom to Compete Award
• National Industry Liaison Group's Best Practice Award