NEWARK, N.J., July 14, 2011 /PRNewswire/ -- Public Service
Electric and Gas Company (PSE&G) today received approval from
the New Jersey Board of Public
Utilities (BPU) to make additional investments in the company's
electric and gas infrastructure, as well as in existing programs to
help hospitals and other customers become more energy efficient.
About $273 million will be spent to
accelerate electric and gas projects between now and the end of
2012 to improve reliability and further stimulate New Jersey's economy. The utility will invest
an additional $95 million in its
successful energy efficiency programs.
Electric and gas investments
The BPU approved extensions to PSE&G's Gas and Electric
Capital Economic Stimulus infrastructure Investment Programs for
electric and gas distribution system upgrades. The projects will
result in job creation and retention, and enable the company to
provide safe, highly reliable electric and gas service to the
utility's more than 2 million customers.
"In addition to strengthening our electric and gas distribution
systems, these additional accelerated capital investments will
improve the state's economy by stimulating the purchase of goods
and services and by creating jobs," said Ralph LaRossa, PSE&G president and COO.
"Whenever possible, the company will use local suppliers and
contractors for the projects, in addition to our own skilled
workforce. The combined projects are expected to generate more than
450 utility and contractor positions through 2012."
The utility will spend about $195
million in accelerated capital improvements to its electric
distribution network that are expected to create more than 300
jobs. Among the projects are upgrades to voltage regulators,
insulators, and breakers at substations; the replacement of
underground cable facilities including transformers, network
protectors and relays; upgrades to substation fire protection
systems, and the replacement of overhead cable and other
equipment.
The accelerated gas stimulus work includes eight projects
representing an investment of approximately $78 million to enhance the reliability of the
utility's gas distribution system. Among the projects are the
replacement of 47 miles of aging cast iron and bare steel gas mains
and 4,200 bare steel gas services. Additional projects include the
replacement of aging or obsolete gas pressure regulators, meter and
regulating equipment, and electronic measurement systems. The
projects will create more than 150 positions.
These latest investments are in addition to about $700 million already invested by the utility
since 2009 in accelerated infrastructure upgrades that resulted in
1,300 jobs new jobs created. PSE&G will recover the cost of the
new programs through adjustments to electric and gas rates that
would increase the typical residential customer's bill by less than
1 percent when taken together.
Energy efficiency programs
In other action today, the BPU approved a request by PSE&G
to invest an additional $95 million
to bring energy efficiency measures to cash-strapped hospitals,
municipalities, non-profits and multi-family housing units,
including affordable housing and senior projects. The investment is
an extension of a $166 million
program approved in 2009 to provide energy audits and the direct
installation of energy efficiency measures to customers who might
not otherwise have been able to afford them.
This two-year program extension will provide additional
investments in three program segments that are fully subscribed and
have a backlog of customers who wish to participate.
Hospital Efficiency Program
New Jersey hospitals have been
particularly hard hit by the economic turndown. The program's
popular integrated approach to energy efficiency for this
undercapitalized market sector has provided significant
infrastructure improvements to urban hospitals. This extension will
permit an additional $50 million
investment targeted to in-patient medical facilities located in
PSE&G's electric and/or gas service territory. A free
Investment Grade Audit will determine potential savings derived
from a variety of measures and technologies including the
installation of lighting, HVAC, humidification, ventilation motors,
energy management systems, and other energy consuming equipment. On
average, hospitals will repay about 30 percent of the cost of
improvements over three years, interest free, on their PSE&G
bill.
Municipal/Local/State Government Direct Install Program
An investment of $25 million is
available to government and non-profit facilities that receive
electric and/or gas service from PSE&G. The program addresses a
critical market segment consisting of numerous government and
institutional facilities that are experiencing reduced revenues and
struggling to hold down tax assessments. Government buildings,
schools, universities and county colleges, community centers and
regional authorities all are eligible. The program is targeted to
buildings with annual peak demand use at or below 150 kilowatts.
Customers receive an energy evaluation and report of recommended
energy-savings improvements. Lighting upgrades are the primary
improvement available under this program, with refrigeration, HVAC
upgrades and other energy-saving measures considered where
appropriate. PSE&G will initially pay the full installation
costs for all recommended energy savings improvements with the
customer repaying 20 percent of the total cost to PSE&G over
two years, interest free, on their PSE&G bill.
Residential Multi-family Housing Program
About $20 million will be invested
to address the needs of multi-family housing projects with five or
more units. Eligible projects include New Jersey Housing and
Mortgage Finance Agency (NJHMFA) financed projects and non-NJHMFA
projects including garden, low, mid, and high-rise developments.
Building owners receive an Investment Grade Audit at no cost.
Cost-effective projects identified by the audit may include
upgrades to lighting, HVAC, humidification, ventilation, windows
and doors, motors and other energy consuming equipment. Measures
with a simple payback of 15 years or less will be considered for
retrofit or replacement opportunities. PSE&G will pay all
upfront costs. On average, the customer will repay 30-35 percent of
the installed equipment costs, interest free, through their
PSE&G bill.
All auditing services for the programs are provided through
qualified audit and engineering professionals employed by PSE&G
and hired through a competitive bid process. The program
participants will hire local contractors to install the approved
equipment.
The BPU's decision will allow recovery of investment through an
energy-based charge. The average residential electric customer will
pay about 80 cents per year and the
average residential heating customer will pay 92 cents per year in the first year of the
program.
Public Service Electric and Gas Company (PSE&G) is
New Jersey's oldest and largest
regulated gas and electric delivery utility, serving nearly
three-quarters of the state's population. PSE&G is the
winner of the ReliabilityOne Award for superior electric system
reliability. PSE&G is a subsidiary of Public Service
Enterprise Group Incorporated (PSEG) (NYSE: PEG), a diversified
energy company (www.pseg.com).
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SOURCE Public Service Electric and Gas Company (PSE&G)