UPDATE:PSE&G Seeks OK To Spend $888 Million, Create 1700 Jobs In NJ
23 Januar 2009 - 12:01AM
Dow Jones News
Public Service Electric & Gas Co. plans to spend $888
million over the next two years on energy infrastructure and
efficiency and environmental programs, creating about 1,700 jobs in
New Jersey.
In a filing with the state Board of Public Utilities, New
Jersey's largest utility, a unit of Public Service Enterprise Group
Inc. (PEG), is seeking approval of $698 million in accelerated
investments in electric and gas distribution system capital
projects. PSE&G plans to recover the cost through an annual
adjustment to electric and gas rates of not more than 1%.
A second filing seeks approval for PSE&G to spend $190
million more to encourage conservation and create green jobs.
The company asked for approval by April 1.
"PSE&G's proposals are in direct response to [New Jersey]
Gov. Jon Corzine's call for utilities to invigorate the economy,"
said PSE&G Chief Operating Officer Ralph LaRossa.
LaRossa said the utility will try to use local suppliers and
contractors for the programs.
The plan would increase total capital spending, which was
forecast at about $1.55 billion this year for the parent company.
Public Service Enterprise Group had cut its capital spending
outlook by $275 million to $325 million last fall in response to
financial market volatility.
A spokeswoman said the company expects to update its total
capital spending forecast, including the impact of the new plan,
when it reports earnings next month. The company will raise
additional capital for the new projects, but doesn't plan to issue
new stock.
The company is seeking from regulators an allowed return of
10.3% for the projects.
Under the $698 million program, PSE&G would spend $406
million to improve electric systems and $292 million on gas systems
in the next two years. Planned are $62 million for replacing street
lights and efficiency improvements at PSE&G facilities;
replacement of aged underground cable facilities, network
transformers and relays; and upgrading of overhead wire, cable and
transformers.
Gas-infrastructure investments include replacing and reinforcing
aging gas cast-iron and bare-steel mains and services, purchasing
specialized construction equipment, and upgrading meter and
regulator stations. Less-efficient mercury-vapor municipal street
lighting would be replaced with more-efficient
induction-fluorescent lighting.
The $190 million would expand programs, approved by the BPU last
year, to provide energy- and money-saving measures directly to
families and businesses. These include free energy audits to
identify ways to become more energy-efficient and funding for new
technologies and demonstration projects.
Public Service Enterprise Group shares closed Thursday at
$30.48, down 26 cents, or 0.85.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
-By Mark Peters, Dow Jones Newswires; 201-938-4604;
mark.peters@dowjones.com
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