Public Service Electric & Gas once again has won special incentive rates to expand its high voltage transmission system, although a federal agency shaved the return it sought to earn on the nearly $1 billion project.
In a decision released on Friday, the Federal Energy Regulatory Commission awarded the state’s largest utility much of what it sought to build the $895 million Northeast Grid Reliability project, which PSE&G and the operator of the regional power grid argued is necessary to maintain the electricity system.
The issue of utilities being awarded special incentive rates has emerged as a contentious dispute between state regulatory officials — and not only in New Jersey — and the federal agency, which uses the mechanism to encourage the building of high-risk transmission projects. Since FERC initiated the policy, it has received more than 70 applications from transmission owners seeking special incentive rates for $50 billion worth of projects.
The incentives typically include higher rates of return on their equity investment as well as provisions that allow the owner of the transmission system to begin collecting payments from ratepayers while construction is in progress as well as a full recovery of costs if the project is cancelled.
In this instance, PSE&G had sought a 12.68 percent return on equity, far higher than the 10.30 percent return it earns on investments in its local distribution system, which delivers electricity to homes and businesses. In its decision, the federal agency reduced the return on equity for the project to 11.93 percent, according to Stefanie Brand, director of the New Jersey Division of Rate Counsel. Both the division and the Board of Public Utilities opposed the incentive rates sought by the utility.
“It’s hard to truly celebrate,” Brand said, referring to the FERC decision. “It’s still too generous, but they are starting to step back a bit and recognize they can’t provide them with whatever goodies they want.”
The BPU also had a mixed reaction to the decision, “In today’s economic climate, many investors would jump at the chance of such a rate of return,” said Greg Reinert, a spokesman for the agency. “We will continue to closely follow all matters before FERC and advocate in the interests of ensuring the lowest reasonable energy costs for all of New Jersey’s ratepayers.”
The NGR project calls for upgrades to an existing transmission line running from Hudson County to Roseland in Essex County. It involves the construction of 25 miles of new overhead transmission lines and another 15 to 18 miles of underground lines, as well as upgrades to 12 substations and the replacement of more than 100 towers.
Read the rest of the story at NJ Spotlight.
There go the trees!
And the view as well as some of our natural resources
PSE&G’s 45-mile long Susquehanna-Roseland electric line will be built along an existing transmission route and is planned to pass through 15 different New Jersey municipalities. New transmission towers would be built next to the current 80 foot towers, but the new towers would rise to heights of almost 200 feet. The route of the proposed 500-kilovolt electric line will cut right through one of the state’s most precious resources-the 860,000 acre Highlands Region as well as the Delaware Water Gap National Recreation Area (pictured above) and the Appalachian Trail.
http://www.nynjtc.org/issue/pseg-powerline-proposal
Here’s an environmental impact statement as well as otherdocumnets from the National Park Service:
http://www.parkplanning.nps.gov/documentsList.cfm?projectID=25147
Ladies, ladies, cities are where the smart people are who will solve all the world’s problems, urban areas need large transmission lines. Don’t you want the world saved from destruction?
RoC – 200 foot towers are just a tad too much. Do you really want to see the few open spaces left in NJ strewn with them?
But, we’re smarter in numbers Pat, and we collectively need to charge our iPods so as to keep inspired and solve the worlds problems. We’re facing annihilation, a few towers seems hardly worth the fuss.
Indeed, ROC, enough of this talk of big cities = big ideas. Hogwash !
The next GOP convention will be held in Minowi, Nebraska, population 1. ( was 2 )
At Rudy’s Library.
http://www.geocities.com/perry_peterson_1999/library-sm.jpg
RoC If you’re that into the technology then solar panels may be your best bet.