A friend recently sent me a story from Platt’s energy Web site that is a very interesting development. The Platt’s story is behind a pay wall, so it won’t do much good to provide you with a link.
Apparently, the NJ Board of Public Utilities has filed a request with FERC to revoke the cost recovery/incentive profit rate for the Branchburg-Hudson transmission project, to be owned by NJ power company PSEG. According to the Platt’s story:
Public Service Electric and Gas is defending incentive rates it was granted for a transmission project in the PJM Interconnection, after New Jersey officials urged US energy regulators to revoke the incentives because PJM eliminated the project from regional plans.
PJM’s board of directors in October approved eliminating the $1 billion, 500-kV project PSE&G proposed, the “Branchburg to Roseland to Hudson” line, from its regional transmission expansion plan.
The board, acting on the recommendation of the PJM Transmission Expansion Advisory Committee, said reliability could be maintained by upgrading existing lines rather than building the new line.
PSE&G then said it was canceling the line and will, instead, upgrade existing lines and build some smaller lines, but the company wants to retain the incentives.
In November, the New Jersey Board of Public Utilities and the state’s rate counsel asked the Federal Energy Regulatory Commission to revoke incentive rates FERC had granted for the original 59-mile line. The state officials said PSE&G should be required to re-apply for the incentives.
Greedy, greedy, greedy.
The Branchburg-Hudson line is the easternmost connection of Project Mountaineer to the huge New York power markets. Branchburg-Hudson was PSEG’s next step after the Susquehanna-Roseland line. Not even PJM wants this project any more. And that is saying something.