NEWARK, N.J., July 25, 2012 /PRNewswire/ -- PSEG has renewed the lease on the well-known building in downtown Newark that houses its corporate headquarters, reaffirming its commitment to New Jersey and its desire to invest in energy efficiency. With its new 15-year lease, PSEG will call the landmark building at 80 Park Plaza home through the year 2030.
PSEG has called Newark home for more than a century. While this is not the first building in the city the company has occupied, the 26-story tower and three-story plaza building owned by Wells Real Estate Investment Trust II (Wells REIT II) has served as PSEG's headquarters since 1978.
As part of the lease, Wells REIT II and PSEG will be making infrastructure improvements that are expected to result in several million dollars in energy savings within the next four years. Planned improvements include new chillers, floor-by-floor temperature controls and new lighting.
The energy company considered other locations and other cities before deciding to stay in its current building in Newark. "Newark has been our home for more than 100 years and we're committed to the city," said Ralph Izzo, chairman, president and chief executive officer of PSEG. "The finances and logistics worked and allowed us to stay in downtown Newark, a place we're proud to call home."
The PSEG building is in the heart of Newark's downtown and it is an integral part of the city's economic resurgence. Other recognizable buildings surround it, including Newark Penn Station, NJPAC, the Prudential Center and Seton Hall Law School.
PSEG's subsidiary, PSE&G, has made about $1.5 billion in electric and gas infrastructure upgrades this year to maintain reliability in New Jersey, including $13 million for transformers that provide capacity for Newark Airport and $23 million to add redundancies to a 26 kv network that powers downtown Newark.
"We are very happy that PSEG has decided to renew its lease and keep its corporate headquarters in Newark for another fifteen years. PSEG is a good neighbor and has been a generous corporate citizen of the City of Newark, investing in community initiatives and programs which have empowered our residents," said Cory A. Booker, mayor of Newark. "I would like to thank PSEG's leadership for their continued commitment and for strengthening the heart of Newark's Downtown."
PSEG pays $1 billion in compensation to workers in New Jersey each year; spends $1 billion with businesses in the state; sends out $100 million in dividends to 86,000 shareholders in the state; pays $375 million in local and state taxes; and gives more than $7 million to New Jersey charities and nonprofits.
The 1-million square foot building is home to 1,650 PSEG employees and contractors who work for the parent company or one of its subsidiaries, including PSEG Power, Public Service Electric and Gas (PSE&G) and PSEG Energy Holdings. PSE&G is New Jersey's largest and oldest utility.
Public Service Enterprise Group (NYSE : PEG ) is a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings. For more information, visit www.pseg.com.
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SOURCE Public Service Enterprise Group (PSEG)