Leadership New Jersey Wrap Up: Ralph Izzo of PSEG

Ralph is Chairman of the Board, President and Chief Executive Officer of Public Service Enterprise Group Incorporated. He spoke about environmental issues. Focused on CFL bulbs. Consumers are looking at the pricing of bulbs. PSEG just announced a new 400 megawatt power plant today, estimated $250-$300 million cost.



Higher "hurdle rate" for CFL bulbs. Need to correct the flaw in the marketplace. Need to make the customers into investors willing to pay more for the CFL bulb knowing that the savings are real over time.

Renewable energy sources are a key component of energy efficiency going forward, and clean power plant operations.

State will need a new nuclear power plant. Not proposing to do it right now, will take 10-12 years to get any electricity produced. It is carbon-free source of electricity. PSEG has a site it already owns for the plant.

Firm believers in NJ at PSEG, Ralph says.

Leadership New Jersey Panel 3 (10,000 Foot View): National and International View

Panel 3: The Natitonal and International View (from 10,000 feet)
Leading Corporations discuss the challenges they face in remaining in the state.
Moderating is Kathy Kish of MarketEntry, a marketing communications firm.


Leadership NJ Panel 3: Panelists discuss national and international perspectives on the regional economy. From left: Nick Montalto, Diversity Dynamics; Tom Morr, Select Greater Philadelphia; Jay Biggins of Biggins Lacy Shapiro, a location economics firm; Tom Tauke, EVP of Public Affairs, Policy and Communications of Verizon; and moderator Kathy Kish of MarketEntry.

Tom Tauke, Executive VP, Public Affairs, Policy and Communications of Verizon, billed as moderator, actually gave an overview summary.

Notes that he visited Google last week to see new version of Google Earth. Driver said he was using Google Earth today to get to Trenton. Even with Google Earth you need the right address. There's a difference between Stockton Street and South Stockton Street. "Nothing here looks familiar." Sounds a lot like New Jersey in general, huh?

Not a NJ resident, but spends most of his time here because of his work for Verizon.

In NJ, Verizon can't charge a late bill fee to nonpayers. Says something about state's mindset. Also strange to people from outside the state that you can't pump your own gas in NJ. It says there are forces here that prevent pepole from doing "normal" things.

New Jersey has a great comms infrastructure. Fiber to the home $1 billion/year means state will be most wired in the country.

Reputation of state worse than biz climate. State's government viewed as corrupt. Businesses want to invest in places with stability and where the processes work right. Doesn't think NJ deserves the bad reputation. State gets a bit of a [bad] rap. Business climate is viewed badly, partly because of momentum in attracting high wage jobs. Decline in the # of high wage jobs in the state. Need to find ways to break out of that.

Leadership is a key issue.Good leadership will cause people to take a "second look."

Exchange among the panelists:

Jay Biggins, Biggins Lacy Shapiro

Kish asks Biggins, small state, small business is important but we are very respectful of the big companies like Verizon that have regional or corporate HQs here. Do we want those companies to stay?

Biggins notes involvement of his location economics firm in harbor development in New York.

On NJ, he says that one of our most important industrial assets is R&D, knowledgeware. Losing that, major pharma companies, some have said publicly won't invest further in NJ. Won't move, but migration "by attrition." We have a tax base and legislature, even as we cooperate as a region, have healthy competition. PA is very effective in pharma industry, peeling off large opportunities but also small entrepreneurial companies. NJ doing reasonably well with startups, but regionally losing more than we are gaining.

Tampa FL has a "Wall Street South" - lots of financial svcs jobs sailed right over NJ and PA, in labor surplus markets where the regulatory environment was hospitable and costs low.

NJ regulatory environment "unpredictable or worse." Captured by interest groups where we are not achieving balance, even with aggressive advocacy on all sides. NJ needs to do a lot in fact and in perception to "break out of the morass," both the facts and the perception that it is a difficult place to do business.


Leadership New Jersey: Program chair Michael Willmann and the studio audience listen to Panel 3 discuss the national and international view, at the Forum on the Future of New Jersey, 10/24/07, Trenton NJ.

Tom Morr, Select Greater Philadelphia

Mentions famous sign on Trenton-Morrisville bridge, "Trenton Makes, The World Takes." -Things do not stand still, every place is a work in progress. Philadelphia/NJ region has remade itself. Fewer manufacturing jobs in region than national avg. Service based, knowledge driven economy. Most of the world doesn't know that. Perception of declining rust belt area with low income populations and unemployment.

Need to help create the parade for the leaders to lead. We're the stewards, need to help the leaders make the decisions they need to be able to make. We need to be "very afraid" of where we are going to be 20-25 years from now.

Nick Montalto, Diversity Dynamics
Nicholas Montalto says: Global marketplace. The talent-attracting "nodes" will be most successful in the global economy.

Not all environmental regs are good, properly applied, or properly sized, says Biggins. Have a guerilla campaign going on that is "almost beyond civility" in some cases. Need to achieve balance between economic development and quality of life, but lookat the extent to which economic development will vote with its feet because it is being restrained.

Morr: You avoid those places that make business difficult. If regulations are tough on both local and nonlocal companies, that's OK, but it's the consistency thing. Need to have higher expectations of elected officials and create mechanisms that bring resolution and harmony. Electronic voting in Congress makes it impossible for members to duck issues that may be good for economy or harmful to their constituents.

Nick Montalto: If we are to attract best and brightest, pepole look for opportunities to enjoy leisure activities, so a strong environmental sensitivity is important. Also important strong arts and culture infrastructure, and vibrant ethnic communities. Ethnic diversity is one of our great strengths, are we tapping into it?

Leadership New Jersey, Panel 2: The Regional View (from 500 ft)

Panel 2: The Regional View (from 500 ft.)
Regional agencies offering their strategies for attracting business and the investments needed to ensure the state's competitiveness.
Moderated by Jack Lettiere of Nation's Port



Leadership NJ Panel 2: Regional View. From left: Susan Bass Levin of Port Authority of New York & New Jersey; Joe Montemarano of SMART; Carl Goldberg of NJ Sports & Exposition Authority; Tom Carver, Casino Reinvestment & Redevelopment Authority; Bob Gross, Delaware River Port Authority; Moderator Jack Letierre, Nation's Port

Panelists Comments

Tom Carver, NJ Casino Reinvestment and Redevelopment Authority;

Assets we have are "blatant." Problems we have challenges are to use them intelligently. We "bifurcate" our thinking into North and South Jersey. Example, "that little gritty port in Camden." great desire to get rid of it to build nice waterfront properties, but without planning to replace it.

Major growth will be in the southern part of the state. Trying to coordinate through CRDA all of the state agencies involved in land use and transportation infrastructure. Gov. office has bought in and everyone is on board.

Doing the research to put in new master control for traffic system in Atlantic City. Dynamic signage and traffic control. Also talking about extension of Patco High Speed Line.

Talking to DEP about land use.

Bombarded every day by politicians promising not to raise taxes. Thinks they don't understand the problems.

Tom singles out Steve Adubato who is running a North Ward center in Newark and is "saving kids" by getting them out of the Newark school system.




Bob Gross, Delaware River Port Authority

Need to compete not among ourselves, but with other states. Camden port - can accommodate retail, entertainment and port activity if we work smarter.


Carl Goldberg, New Jersey Sports and Exposition Authority;

Now have $1.3 billion stadium "finest football facility in the US" built by JV of Jets and Giants. Will have mass transportation link, rail connection to sports complex, Feb 2009. Bring people from Bergen, Morris, Monmouth, Hudson Counties, and NYC to Meadowlands for sports events.

Jobs, tax revenue being created by construction, but also hope that sports complex will help that region of NJ become a tourism destination. Thinks tourism will help drive NJ economy, ranked second now bringing people to the shore, wants to bring them to Meadows.

Surprising that one of most important "eco tourist" destination is the 6,000 acres of the Hackensack River estuary area where people are coming to visit.

Housing costs are a problem, very expensive to live here. Have to look at overrregulation, how to incent the development community to build houses, office, and retail in areas of the state where that is desirable.

Susan Bass Levin (Wikipedia), Port Authority of New York and New Jersey (Website is www.panynj.gov, but as of 11:26AM it was coming up as not reachable.

Former mayor of Cherry Hill, getting things done, because it's a bistate agency, take longer because of the strategic view, longer tail solutions for problems. NJ a very small crowded state with the perfect location. Road and transit, bridges, tunnels, all far beyond capacity. But election to election, local government will not solve those problems. That's why a bi-state agency is important.

Building ARC "Access to the Region's Core", new tunnel for trains to NY. Cost $7.6 billion, but will take cars off the road.

72 percent of new households in the region will be west of the Hudson, that's NJ. People from here want the jobs that will be created in NYC. Tunnel also creates construction jobs and economic development in the towns served. Not a short-term project.

Joe Montemarano, SMART (Strengthening the MidAtlantic Region for Tomorrow).

We are not prepared to compete against other parts of the country. Need to get better coordiantion. Need to work together to identify common areas and market that to other parts of the country and the world.

The game has changed. What we have begun to develop is entrepreneurial spirit in NJ that wasn't present even in the early 80s. The sectors, pharma, biotech, IT, military, there are ups and downs in the sectors. Fortunately not all "in the toilet" at the same time.

Silicon Valley successful because if things don't work out at one company, you go across the street to another, you don't have to move.

Question Period

Susan Bass Levin - Public transit (in response to audience question) needs to be reliable, fast and cheap. Basic question is these things aren't cheap, talking billions of $ and multiyear commitments. Question of where do you put trains. In Cherry Hill looking at expanding train service, had a "raucous" meeting where everyone objected to the noise and train traffic that expansion would bring.

PATH system is looking at increasing capacity. Right now at peak capacity. Need to be looking at long-term solutiopns. At PATH, top to bottom modernization program, will help Newark and Harrison increase economic development potential.

Bob Gross - PATCO looking at expanding west in Philadelphia and east into NJ. Multibillion-dollar projects, difficult, one thing they are doing is a transit-oriented development component, to fold smart technology into stations that make them more than just a railroad stop.

Leadership New Jersey Panel 1: Insider's View, on the ground

Moderating panel is Andrew Sinclair of Princeton Public Affairs Group.


Forum on the Future of New Jersey: Panel 1, Business and academic leaders discuss why businesses locate in NJ. From left: Ann Limberg, NJ president of Bank of America; Jim Hughes of the Bloustein School at Rutgers University; Ken Traub, American Bank Note Holographics; Greg Bohn of Advanced Drainage Systems; and moderator Andrew Sinclair of Princeton Public Affairs Group

Panelists opening comments on why businesses choose NJ when they can go anywhere.

Greg Bohn, Advanced Drainage Systems (NJ connection is in this BusinessWire release)

Facility in NJ is most expensive and time-consuming they've every built. Regulations weren't impossible but a significant drag in the timeframe, 6-9 months behind their plan. Influence of construction costs related to unions, they did a great job, and got a great facility, but it was a challenge that raised costs "and some blood pressures." Happy to be in NJ, good run so far.

Estimates $1 million in transport cost savings by being closer to customers locating the plant here.

Jim Hughes, Dean of the Bloustein School at Rutgers

1980-2000, reinvention of NJ economy. Badly fading manufacturing dynamo, by 2000 knowledge based economy, with 4.1 million jobs, enormous high density concentration of jobs. One million can be considered key knowledge-based jobs, advanced post-industrial jobs in three sectors, information (telecom, internet, publishing); professional and business services; financial activities (traditional banking and very advanced Wall Street-type brokerage employment.)

Given that concentration, gives the state second-highest median household income. Maryland just knocked NJ off its #1 perch. Income in New Jersey 33 pct higher than the rest of the nation. one of the most "potent" consumer markets in the country.

NJ has one of the finest labor forces, fifth among the states in percentage of adults with BA or higher degree. Third among states in Ph.D degrees. Attractive for pharma companies, "a lot of workers to steal from companies that are already here."

Geography is good - NYC still the "dominant economic node" in the country, and being near it is important.

Ann Limberg, New Jersey market president for Bank of America

Incredibly important market, highly talented workforce. Company nationally and internationally is focused on the consumer. More than 60% of revenue comes from consumer bank. NJ one of largest markets for the bank. Consumer opportunities ranging from highly wealthy individuals to students. NJ have 6,000 employees, and it's the most expensive place for bank to do business.

Kenneth Traub, American Bank Note Holographics.
Move to NJ was consolidation from Westchester County, New York; Dalton, Massachusetts; and Pennsylvania.Turned out to be a teriffic move for his company. Ironic reaction to Chris Christie's remarks about corruption, he says he took control of the company after previous CEO was caught committing securities fraud. Very ironic considering that company makes security holograms for document and currency protection.

Should be looking at positives, gets encouragement from Rep. Rush Holt to locate here. Increased his space 80% but saved over half a million dollars in operating expenses.

Comment from Joseph Montemorano, Princeton University, state hasn't reinvested in its research universities. Sees a lack of comprehensive strategy, except becoming a "one-industry" state, namely pharma. Thinks state needs to make transformation from telecomm to IT, but needs someone at state level to discuss where the investments should be made. Universities otherwise may pursue paths independently of state.

Question from audience member: What are some of the givebacks from companies, re diversity, community, minority and women-owned businesses, what are the commitments on that?

Bohn's company has donated to special needs children in Florida. Came from a casual conversation between two executives.

Questioning was thin and softballs mostly.

Liveblogging Leadership New Jersey's Forum on the Future of New Jersey

Today we are producing podcasts for Leadership New Jersey at the studios of NJN in Trenton. We did this last year, and you can still hear last year's podcasts at the podcast blog. The Forum on the Future of New Jersey also has its own site.

That's also where we will be posting the podcasts from this year's program, which is just getting underway with welcoming remarks from Diane Brake, LNJ '90, of PlanSmart NJ.


Diane Brake


Michael Willmann of WMSH Marketing Communications in Haddonfield is the organizer of the Forum.

Here's the lineup of speakers/panels. We'll blog each one separately.

1. "Is New Jersey in the game...or on the bench?" - US Attorney Christopher Christie on the challenges of balancing business needs and the duty to guard against terrorism.



Panel 1: The insider's view (on the ground)
Academic and business leaders discussing why businesses choose to locate in New Jersey. Panelists are Greg Bohn, Advanced Drainage Systems; Jim Hughes of the Bloustein School at Rutgers, Ann Limberg, New Jersey market president for Bank of America; and Kenneth Traub, American Bank Note Holographics.

Panel 2: The Regional View (from 500 ft.)
Regional agencies offering their strategies for attracting business and the investments needed to ensure the state's competitiveness.
Moderated by Jack Lettiere of Nation's Port
Panelists: Tom Carver, NJ Casino Reinvestment and Redevelopment Authority; John Matheussen, Delaware River Port Authority; Carl Goldberg, New Jersey Sports and Exposition Authority; Susan Bass Levin, Port Authority of New York and New Jersey; Joe Montemarano, SMART (Strengthening the MidAtlantic Region for Tomorrow).

Panel 3: The Natitonal and International View (from 10,000 feet)
Leading Corporations discuss the challenges they face in remaining in the state. Moderator, Tom Tauke of Verizon. Panelists: Jay Biggins, Biggins Lacy Shapiro; Nick Montalto, Diversity Dynamics; and Tom Morr, Select Greater Philadelphia.

Keynote speaker at lunch is Gary Rose, Economic Growth Chief, State of New Jersey.

There are about 150 attendees at the New Jersey Network studio in Trenton for the program. We'll be back with more as Chris Christie gets his speech underway momentarily.