Municipal Energy Audit Release

Richard Rinck

Informations

• Publié par: Zien
• Nombre de lectures: 8
• Langue: English

Extrait

New Jersey Board of Public Utilities

NEWS RELEASE

For Immediate Release:

Contact:

March, 29, 2011

Greg Reinert

609-777-3305

New Jersey Board of Public Utilities Approves Agreements to Build

Three New Mid-Merit Electric Generation Facilities

- Projects Represent Positive Present Value of Nearly $1.8 Billion for Electric Consumers -

TRENTON, N.J. – The New Jersey Board of Public Utilities voted today to approve three

Standard Offer Capacity Agreement (SOCA) awards to build new mid-merit electric generation

facilities. The purpose of the awards is to improve reliability of the electric grid within New

Jersey, while having added economic and environmental benefits, including a present value

savings of approximately $1.8 billion for New Jersey’s electricity consumers.

The three generation projects, to be located in Newark, Old Bridge and Woodbridge, were

recommended to the N.J. Board of Public Utilities Commissioners (Board) by the Long-Term

Capacity Agreement Pilot Program (LCAPP) Agent Levitan & Associates, Inc. (LAI). The three

generation projects will provide a total amount of capacity, i.e., the ability to generate electricity,

referred to in industry jargon as unforced capacity (UCAP), of 1,948.5 Megawatts.

On January 28, 2011, Governor Chris Christie signed into law P.L. 2011, c. 9, amending and

supplementing P.L. 1999, c. 23 (LCAPP Law), establishing an LCAPP to promote the

construction of base load and mid-merit electric generation facilities to improve the reliability of

the PJM Grid within New Jersey.

On February 10, 2011, the Board issued an Order initiating a

proceeding to implement the actions required by the LCAPP Law, and selecting LAI as the

LCAPP Agent.

In the role of LCAPP Agent, LAI had responsibility for assisting the Board with

establishment of the LCAPP, prequalifying eligible generators, and submitting recommendations

for the Board’s consideration.

On March 15, 2011, LAI issued an initial recommendation of SOCA proposals to the Board.

As

a result of the Board’s vote (4-0), the state’s four electric utilities will begin the process of

signing contracts with the following generators:

Newark

Energy Center

Old Bridge Clean

Energy Center

Woodbridge

Energy Center

Sponsor

Hess Newark, LLC

New Jersey Power

Development LLC

CPV Shore, LLC

Unforced Capacity 625.0 MW

660.1 MW

663.4 MW

Location

Newark, NJ

Old Bridge, NJ

Woodbridge, NJ

Technology Type

Combined Cycle

Combined Cycle

Combined Cycle

Fuel Type

Natural Gas

Natural Gas

Natural Gas

First SOCA Year

2016-2017

2015-2016

2015-2016

Term

15 years

15 years

15 years

“The LCAPP competitive bid process will result in improved reliability for New Jersey

ratepayers while providing rate relief for the next 15 years with a present value of $1.8 billion,”

said Lee A. Solomon, President of the Board of Public Utilities.

“Ratepayers may see even

greater value over that same period if capacity prices increase, because the SOCA provides for

all capacity profits over the Standard Offer Capacity Price to be returned to ratepayers.”

In terms of job creation, it is estimated that over 8,000 job-years, in total, will be created during

the construction phases of the three generators in direct, indirect and induced employment.

According to information provided by the generation applicants and information on generic

combined cycle facility construction and operations costs, the potential employment impacts of

the three projects are estimated to directly create approximately 2,400 job-years during the

construction period. There will also be about 80 direct permanent, full time jobs during

operations over the facilities' lives of 30 years or more.

In addition, the ripple effects of the

construction and operations expenditures on materials and services provided by New Jersey

firms, as well as the wages and salaries received by workers directly engaged in construction and

operations, will create many more jobs.

In addition to reliability and economic benefits for ratepayers, the three projects provide

significant environmental and societal benefits.

The development of nearly 2,000 MW UCAP of

efficient, gas-fired combined cycle projects in New Jersey will, in the aggregate, reduce

emissions of air pollutants by displacing existing generation with higher emission rates of NOx,

SO2, mercury, and other gases.

The reductions are equivalent to the annual emissions of roughly

250-MW of coal-fired generation running at 100% capacity everyday of the year.

Each of the three generators appears to have community support; there is no known opposition to

any of the projects.

Each generator is in the process of negotiating a PILOT or Host Community

Benefit package, so local property taxes or other community payments cannot be quantified at

this time.

– end –