PSE&G Gets New Jersey Approval To Spend $515 Million On Solar

This will be the largest pole-attached solar project in the world.

Public Service Enterprise Group Inc unit PSE&G can spend $515 million of ratepayer money for 80 megawatts of solar power projects, New Jersey utility regulators ruled on Wednesday.

Regulators reduced PSE&G's original proposal of $773 million for 120 megawatts of solar power. The state utility regulating board killed plans for solar panels on government buildings.

Some 40 megawatts of power will be generated by placing small solar units on 200,000 power poles in the PSE&G service territory. PSE&G says this will be the largest pole-attached solar project in the world.

The other 40 MW will come from solar panels on commercial roofs and in "solar gardens" owned by PSE&G as well as third parties.

The projects are to be installed by the end of 2013. By the time they are up and generating, the average PSE&G residential customer will be paying about 10 cents per month for them. Rates will be increased until 2028 to pay for the solar projects, and the average customer will eventually pay 35 cents per month for them.

No estimate was given as to the amount of the defrayed costs.

While New Jersey customers are not paying the full $515 million, that overall cost for development of 80 megawatts of electricity generation is about $6.4 million per megawatt. It costs about $500,000/MW for natural gas power plants, $2 million/MW for coal plants and $4 million/MW for nuclear power plants.

When all units are up and generating, 80 MW can power about 640,000 New Jersey households.

PSE&G is allowed a 10 percent rate of return on the projects.

PSE&G is the regulated gas and electric utility in New Jersey for its parent, which is based in Newark, New Jersey.

PSEG owns and operates more than 16,500 MW of generating capacity, markets energy commodities, and transmits and, in New Jersey, distributes electricity to 2.1 million customers and natural gas to 1.7 million customers. It also has another 2.9 million customers around the world.

SOURCE : REUTERS