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Written Policy—A Team Approach: The need for a clear policy statement on drug and
alcohol abuse is apparent, and common sense dictates that it be made available in writing
to all employees and supervisors. Successful implementation of the company policy will
depend upon the method by which the policy is developed. A team approach is definitely
recommended and a committee within the company comprised of representative officers
who will be responsible for interpreting and implementing the policy after it is finalized is
essential. Included on the Drug Awareness Committee should be representatives of Indus-
trial Relations. Security, Medical, Labor Relations. Nuclear Operations, Employee Assist-
ance. Legal, and Fossil-Fuel Generation. Generally, the Chief Industrial Relations Executive
should serve as chairman of this committee. This group, much like the Edison Electric
Institute Industry Task Force, would be multi-disciplinary in perspective and would be in a
position to debate, discuss, and subsequently support the company policy that is developed.

The four policy statements referenced in this guide stress certain essential features
worth noting:

a Drugs and alcohol are prohibited from company property and operations:

b. Drug and alcohol use off duty and off premises can affect on-the-job performance;

c. Companies do not was it to pry into the private lives of employees:

d. An employee's use, possession or sale of drugs is subject to disciplinary action up to
and including termination if this use causes impairment on the job or impacts on the
confidence of the public and the government in the company's ability to meet its

e. Employee assistance programs are recognized as company-sponsored resources for
employees in need of help;

f. Homo notification will take place whenever suspected illegal drug substances
are found:

g. The use of legal controlled substances prescribed by a licensed physician is not prohib-
ited, but employees undergoing treatment are advised to make this known to the
company medical department and

h. The parameters of discipline are spelled out.

The policy statements included reflect commitment to health and safety, recognition of
the company's responsibility to the public. stress the need to meet high standards to pro-
vice reliable energy service, and, finally, recognize the problem posed by alcoholic bever-
ages as well as drugs both on and off the job.

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Company Policy Regarding Drug Abuse

For many years the Company has had a strong commitment to its employees to rovide a safe work place and to establish programs promoting high standards of employee health. Consistent with the spirit and intent of this commitment, the Comixany has developed this policy statement regarding drug abuse. Quite simply, our goal is to establish and maintain a work environment that is free from the effects of drug abuse.

While the Company has no intention of intruding into the private lives of its employees, the Company does expect employees to report for work in condition to perform their duties. The Company recognizes that employee off-the-job and on-the-job involvement with drugs an have an impact on the work place and on our ability to accomplish our goal of a drug-free work emvironment.

As in the past. employees who woluntarily request assistance in dealing with a personal drug habit may participate in the Employee Assistance Program without jeopardizing their continued employment with the Company, provided they stop any and all involvement with drugs. The Company's Medical Department will refer employees to an appropriate treatment resource. Volunteering to participate in the Employee Assistance Program will not prevent disciplinary action for a violation of this policy which has already occurred. The following is the Company's policy:

1. The illegal use, sale, or possession of narcotics, drugs, or controlled substances while on the job or on Company property is a dischargeable offense. Any illegal substances will be turned over to the appropriate how enforcement agency and may result in criminal prosecution. , 2. Off-the-job illegal drug use which could adversely affect an employee's job performance or which could jeopardize the safety of other employees, the public. or Company equipment is proper cause for administrative or disciplinary action up to and including termination of employment. 3. Employees who are arrested for off-the-job drug activity may be considered to be in violation of this policy. In deciding what action to take, management will take into consideration the nature of the charges. the employee's present job assignment. the employee's record with the Company and other factors relative to the impact of the employee's arrest upon the conduct of Company business. 4. Some of the drugs which are illegal under Federal. State or local laws include, among others, marijuana. heroin, hashish. cocaine, hallucinogens, and depressants and stimulants not prescribed for current personal treatment by an accredited physician. 5. Employees undergoing prescribed medical treatment with a controlled substance should report this treatment to their supervisor or the Company Medical Department. The use of controlled substances as part of a prescribed medical treatment program is naturally not grounds for disciplinary action, although it is important for the Company to know such use

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Alcohol and Drugs—Employees of the Company are visible and active members of the communities where they live and work. They are inescapably identified with the Company and are expected to represent the firm in a responsible and creditable fashion. The vast majority of our employees reflect credit upon themselves and the Company they represent. The use of non-medically authorized drugs is illegal under State and Federal law. Their use, therefore, quite naturally does not conform to creditable behavior. —Any employee on Company premises who appears to be under the influence of, or is found to have in his or her personal possession, in his or her locker or desk or other such repository, alcohol or non-medically authorized drugs, or is found to have used or to be using such drugs on Company premises, will be suspended immediately pending further investigation. If use or possession is substantiated, disciplinary action, up to and including discharge. will be imposed. —Supervisory employees are to be constantly alert for any such infraction and will be held responsible for identifying personnel who appear to be under the influence of or to be using alcohol or non-medically authorized drugs on Company premises. The supervisor will also be held responsible for taking appropriate and prompt action to suspend and remove any violator from Company premises. —While the Company does not pretend to be judge of individual life styles. employees who use or traffic in any sort of illegal drugs off Company premises are also behaving unacceptably and serious consequences may result. Certain employees perform critical functions in complex and sensitive work assignments in plant or office where alertness and mature judgment are essential. Any such employee known to be using illegal drugs off Company premises will be subject to appropriate action, including possible removal from his or her critical assignment.

- Where the use of illegal drugs while off duty adversely affects an employee's job performance -

or the public trust in the ability of the Company to carry out its responsibilities...disciplinary
action. up to and including discharge. will be imposed.
—These measures may appear harsh, but the Company believes thern to be completely justi-
fied and necessary. In a time of searching public and governmental vigilance concerning the
safe operation of critical utility facilities. we must adhere to strict standards of conduct on and
off the job if we are to continue to fulfill our responsibility to provide reliable energy services
to Our customers. -

This statement is to darify the Company's operational stance and to provide for prompt
effective reaction to any alcohol or drug-related situation which has or could have any impact
on our operations. It does not alter in any way the policy of assisting employees in securing
proper treatment or extending the coverage of the Sick Benefits Plan as indicated for problem
drinking, alcoholism or other drug dependencies.

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Company Policy

Subject: Conduct of Employees

Purpose: The purpose of this policy is to outline the Company's standards and regulations designed to guide officers. employees, and agents in the conduct of their daily business in such a manner as to ensure the highest utilization of the Company's assets and the greatest efficiency of the Company's employees.

Policy: I. Illegal Drugs The possession or use of illegal drugs (defined as any drug or drug-like substance whose sale. use or possession is unlawful) is inconsistent with the Company's objective of operating in a safe and efficient manner. Accordingly, no officer, employee, or agent shall use or have in his or her possession illegal drugs during working hours or on Company property at any time. Additionally, no officer, employee, or agent shall report to work while under the influence of illegal drugs. The services of any employee who engages in such conduct will be subject to termination per vested authority. The only exception is the taking of prescribed drugs under the direction of a physician.

II. Alcoholic Beverages . The use of alcoholic beverages by employees engaged in the construction, operation and maintenance of the Company's facilities is inconsistent with the objectives of operating in a safe and efficient manner. Accordingly, no officer, employee, or agent shall use alcoholic beverages during working hours nor shall alcoholic beverages be served at a Company function without prior approval by the appropriate senior officer of the Company as designated by the Chief Executive Officer. Additionally, no officer, employee, or agent shall report to work under the influence of alcoholic beverages. Employees in violation of this policy will be subject to discipline up to and including termination of employment per wested authority.

Company Policy Statement—
Employee Involvement With Drugs

To All Employees PSE&G is firmly committed to provide its employees with a safe workplace and to protrote high standards of employee health. Because of this, the Company has strengthened and broadened the scope of its policy concerning actions it will take when an employee becomes involved with drugs. Any employee involvement with drugs would prevent the Company from meeting its commitment. A drug-free work environment is especially important in the utility industry because of the basic responsibility of utilities to serve the public safely and without interruption. The responsibility is of even greater significance where nuclear facilities are concerned—as in our own Company. Therefore, the unlawful use. distribution, or possession of drugs on Company property will not be tolerated. Also, the Company expects all employees to report to work able to perform their duties o safely. Off-the-job drug involvement may impair this ability. Where circumstances indicate that such an impairment may exist, the Company will take appropriate action. The importance of this issue to the Company and its employees cannot be overemphasized. Please read the attached policy statement carefully.

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