PSEG Proposes $773M Solar Plan

Public Service Electric and Gas Company (PSE&G) Tuesday asked New Jersey regulators to approve a $773-million proposal for 120 megawatts (MW) of solar power throughout its service territory.

The utility, which is a subsidiary of Public Service Enterprise Group Inc (NYSE:PEG), wants to recover the expense over 15 to 20 years by raising customer rates. The company said the increase would be about $0.10 in the first full year, increasing to about $0.35 per month in 2013.

PSE&G would own and operate the grid-connected solar energy systems to be installed over the next five years. Installation costs are expected to be $6.44 per watt of installed solar capacity.

PSE&G said the initiative will expand New Jersey’s solar infrastructure and will satisfy nearly 7% of the state’s renewable portfolio standards requirements through 2020.

The "Solar 4 All Program" includes four segments:

• Neighborhood Solar (40 MW) – $264 million investment – PSE&G will contract with solar developers selected from a competitive bidding process to design, manufacture and procure solar devices for nearly 200,000 utility poles and street lights in neighborhoods throughout PSE&G’s service territory. 
• Local Government Solar (43 MW) – $273 million investment – Working with solar developers, PSE&G will offer every municipality and public school district in its electric service territory the opportunity to install solar systems on their property. Solar developers will install roof-mounted systems on public schools as well as on municipal and county-owned buildings.  An additional incentive will be offered to municipalities in Urban Enterprise Zones by providing more installed capacity.
• Centralized Solar (35 MW) – $221 million investment – PSE&G will contract for the design and manufacture of 25 MW of ground- or roof-mounted solar systems on land or buildings it owns. In addition, the company will work with developers to install 10 MW of larger solar energy farms on brownfields, non-profit-owned real estate, and underdeveloped real estate to convert them to productive sites for renewable generation.
• HMFA/Affordable Housing Solar (2 MW) – $15 million investment – PSE&G will invest up to $15 million in roof-mounted solar systems to provide electricity at New Jersey Housing and Mortgage Finance Agency (HMFA)-financed or other affordable housing communities, resulting in savings for residents.