PSE&G conducts the following transmission functions: day-to-day operations of the bulk power transmission system; and support activities required for the operation of the bulk power transmission system, including planning, engineering, construction, and Energy Management System (“EMS”) computer support. PSE&G has established procedures, as required by FERC Order No. 2004, to ensure the physical separation of the employees engaged in transmission functions from “walled employees” and to guard against disclosure of non-public transmission or marketing information to these “walled employees.” The day-to-day operations of the bulk power transmission system are conducted from the PSE&G Electric System Operations Center (“ESOC”), which is located within the PSE&G System Operations Area. There is also a back office and computer support area in the System Operations Area that houses managerial and support personnel. Access to the System Operations Area is controlled by card readers on the entry doors. Access to the ESOC, back office and computer support areas is also controlled by separate card readers on their entry doors. Surveillance cameras are in place at access points to these areas. Visitors are escorted or monitored at all hours. The Manager - Electric System Operations maintains a list of individuals having card reader access to the System Operations Area and periodically reviews that list to ensure compliance with the requirements of FERC Order No. 2004. Only PSE&G transmission function employees, who perform the day-to-day operations of the transmission system, authorized PSE&G and shared senior officers, and EMS support personnel have card access to ESOC. PSE&G maintains a geographically remote Emergency ESOC at which similar access restrictions are in place. Planning, engineering and construction activities related to the operation and maintenance of the PSE&G transmission system are conducted at two locations:

1. PSEG’s Corporate Headquarters in Newark and
2. PSE&G’s Hadley Road facility.

Areas at these facilities that house the PSE&G employees performing these activities will be controlled by card reader access. A list of individuals having card access to these areas is maintained by an individual designated by the Vice President - Electric Delivery, and the list is periodically reviewed to ensure compliance with the requirements of FERC Order No. 2004.