State electricity profile new jersey (1)


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State electricity profile new jersey (1)

  1. 1. New Jersey Electricity Market Profile Presented by Lyle Birkey and Andrew Fishbein
  2. 2. The Pennsylvania-New Jersey- Maryland (PJM) Interconnection More than 830 companies are members of PJM 60 million customers 1,325 generation sources In 1927, three utilities in N.J. and PA discovered the benefits of interconnecting their grids and formed the worlds oldest still-existing power pool In 1997, PJM opened its first bid-based energy market In 2001, PJM approved PJM as the nation’s first fully functioning ISO
  3. 3. New Jersey Power Utilities/Companies 1) Atlantic City Electric 2) Public Service Electric & Gas 3) Jersey Central Power & Light 4) Orange Rockland Electric
  4. 4. New Jersey Power Utilities/Companies 1) Atlantic City Electric is a regulated electric utility serving nearly 547,000 customers in southern New Jersey. Privately owned by Pepco Holdings Inc. (PHI) since Other Utilities owned by Pepco Holdings Inc: Atlantic City Electric Pepco is a regulated electric utility delivering electricity to more than 778,000 customers in Washington, D.C., and its Maryland suburbs. Delmarva Power is a regulated electric and gas utility serving more than 498,000 customers in Delaware and the rest of the Delmarva Peninsula PHI Serving 14 states: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. Service Map for Atlantic City Electric
  5. 5. New Jersey Power Utilities/Companies 2) Public Service Electric and Gas Company, is a regulated, publicly owned gas and electric utility company in New Jersey. • New Jersey's oldest and largest investor owned utility. • 19 operable power plants • Total of 13,206 MW of generation
  6. 6. New Jersey Power Utilities/Companies 3) Jersey Central Power & Light is a wholly owned subsidiary of FirstEnergy Inc., which is headquartered in Akron, Ohio. Map of FirstEnergy Inc. Service Area FirstEnergy consists of 10 electric utility operating companies Investor-owned electrical system 6 million customers served within a 65,000 square-mile area Includes Ohio, Pennsylvania, West Virginia, New Jersey, Maryland and New York.
  7. 7. New Jersey Power Utilities/Companies 4) Orange Rockland Electric is a regulated utility serving customers in southeastern New York and adjacent sections of northern New Jersey and northeastern Pennsylvania. Map of FirstEnergy Inc. Service Area 21 power plants across NY, NJ, and PA Wholly owned subsidiary of Consolidated Edison 72,478 customers served in NJ In 1999, O&R sold all of its generating stations as part of the New York State Public Service Commission's plan to deregulate the electric utility industry and create a competitive marketplace. Now O&R purchases power from the PJM Interconnection for the small area of NJ that it holds
  8. 8. New Jersey Board of Public Utilities (BPU) • Originally founded 1907 as Board of Railroad Commissioners; extended jurisdiction and obligations to the core of its current work in 1911 • Consumer protection • Energy reform • Deregulation of energy and telecom • Restructuring of utility rates to encourage energy conservation and competitive pricing • Energy Master Plan (2011) • Recent Actions • $446 million investment by PSE&G for 150MW solar • • Stability for SREC market • • Landfills/brownfields $6-7/year rate hike by 2018 NJNG SAVEGREEN Energy Efficiency Program extended through June 2015 • $85 million investment -- $115 million savings
  9. 9. Regional Transmission Connections, Constraints
  10. 10. In-state v. imported power Demand 40% higher than indigenous capacity 25% imported
  11. 11. In-state generation capacity 17,000 MW capacity 20,500 MW peak load
  12. 12. Generation and fuel mix 55,000 GW in 2010 50% nuclear 38% natural gas 8% coal 1% renewables (wind, solar, hydro)
  13. 13. Renewable generation
  14. 14. Renewable portfolio standard Applies to utilities and retail suppliers Standard: 22.5% by 2021 Includes solar carve-out which rises to 4.1% by 2028, qualifying in-state hydro < 3MW Additional tech minimum: 1,100 MW offshore wind. Standard based on projected production ORECs at fixed price each contract year All compliance must be submitted using RECs
  15. 15. Renewable energy credits Issued by PJM-Environmental Information Services RECs (Class I), SRECs (solar), ORECs (offshore wind) Can be used during year of generation and 2 years after (4 years for SRECs) Must be generated in PJM region Revenue must fund RE projects through NJ Clean Energy Program Non-compliance: remit alternative compliance payment, ACP (SACP for solar). Price determined by BPU: ACP = $50/MWh, SACP at $711/MWh in 2011, declines to $239/MWh by 2028 Payments refunded to ratepayers
  16. 16. REC Markets Glut of SRECs due to hyperactive solar market  prices falling in recent years. High price of $617/MWh reached in May ‘11, Aug ‘10