BPU Approves Utility Spending Plans

NEWARK — The state Board of Public Utilities (BPU) Thursday, April 16 approved infrastructure spending proposals for five of the state’s major utilities, including Cape May County providers Atlantic City Electric and South Jersey Gas, which are expected to provide a major boost to the state’s economy.
According to a BPU release, the utilities expect the $956 million in approved spending will result in approximately 1,300 new hires at the companies. Accounting for the estimated multiplier effect of spending on energy infrastructure, it is estimated that the projects will result in approximately 14,000 total new jobs.
The approved proposals were submitted by:
• Atlantic City Electric ($28 million/92 new hires);
• South Jersey Gas ($103 million/127 new hires).
• Elizabethtown Gas ($60 million/65 new hires);
• New Jersey Natural Gas ($71 million/85 new hires);
• PSE&G ($694 million/933 new hires); and
The approved plans will expedite spending on infrastructure projects previously identified by the utilities as necessary capital investments to ensure the state’s energy security, safety and reliability. Proposals from Rockland Electric and JCP&L are still pending approval.
“These projects will provide critical support for our economy in these fragile economic times,” said BPU President Jeanne M. Fox. “They are the direct result of Governor Corzine’s call last year for a New Jersey economic stimulus plan, the first such state plan in the country. His economic knowledge and foresight will help keep our people working while ensuring our state’s energy reliability and security well into the future.”
Gov. Jon S. Corzine outlined an economic stimulus plan for the state in a joint session of the New Jersey Legislature last October. A key component of the plan was a call for expedited infrastructure spending. All of the state’s major utilities responded with plans submitted to the Board earlier this year.
BPU staff worked with Rate Counsel and the companies to conduct a through review of the submitted proposals to ensure conformity with the state’s Energy Master Plan, to confirm that the projects would result in swift job creation and to maximize efficiency for the state’s ratepayers.
“These projects were carefully reviewed against strict criteria,” explained Fox. “By expediting spending on identified infrastructure needs, these projects can provide important support for our economy now, while ensuring a reliable and secure energy supply for future economic growth. In addition, by putting many of these projects out to bid in a slow economy, this work can be completed at a lower cost to ratepayers.”
BPU staff is wrapping up their review of the pending infrastructure proposals from Rockland Electric and JCP&L after which the Board will complete its actions on the infrastructure spending proposals. Staff is also reviewing utility proposals for over $300 million in energy efficiency initiatives, which will provide additional economic stimulus and are expected to come before the Board in June, 2009.
The proposals were approved by a vote of 4-1, with BPU Commissioners Frederick F. Butler, Joseph L. Fiordaliso, Nicholas V. Asselta and President Jeanne M. Fox voting in favor of approving the proposals and Commissioner Elizabeth Randall voting against approval.