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Released April 21, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG) (Newark, New Jersey) plans to invest about $16 billion in its electric and gas utility business and its competitive power generation unit over the next five years, an increase of about $2 billion from its prior five-year capital budget, company executives told analysts and investors last month.
PSEG has two subsidiaries--a regulated electric and gas utility in New Jersey and a competitive power generation business, which today operates in three regional markets: New England, New York and the PJM (Pennsylvania-New Jersey-Maryland) interconnection.
Most of the planned capital outlays during 2016-2020 will be invested in PSEG's utility unit, Public Service Electric & Gas (PSE&G), which serves four million electric and gas customers in New Jersey. The remainder, about $4 billion, will be invested in PSEG's competitive power unit, which is building new gas-fired, combined-cycle generation in all three competitive East Coast markets.
PSEG Power, the competitive generation unit, is building a 755-megawatt (MW) generator in Maryland, the Keys Energy Center, at a cost of between $825 million and $875 million, William Levis, the president and chief operating officer at PSEG Power, told investors and analysts March 11. That plant, which kicked off construction in 2015, is expected to be operating by 2018. PSEG Power also is building a 540-MW unit, Sewaren Unit 7, in New Jersey, at a cost of between $625 million and $675 million, he added. Construction is scheduled to begin next month and be complete by 2018. PSEG Power also plans to build Bridgeport Harbor Unit 5, in Connecticut, at a cost of between $525 million and $575 million. Construction of that unit addition is expected to begin in early 2017 and be complete by April 2019, Levis said.
The company plans to invest about $7.1 billion in its regulated electric transmission business between 2016 and 2020, according to Ralph LaRossa, president and chief operating officer for PSE&G, the utility business. One of the largest transmission projects will be the Bergen-Linden Corridor project, but the utility also plans to make investments to harden its system against severe weather and upgrade some 69-kilovolt (kV) lines.
PSE&G also expects to invest about $540 million from 2016 to 2020 in its electric distribution network to enhance reliability and resiliency, in a program it terms Energy Strong, LaRossa said. An additional $140 million will be invested in solar power during that time. Spending on energy efficiency programs is expected to total $95 million over the five-year period. LaRossa added the utility expects to invest about $905 million in its gas distribution unit to modernize and replace about 4,800 miles of cast-iron and unprotected steel main lines.
By year, PSEG's utility business plans to spend about $3 billion on capital projects in 2016 and 2017. The electric transmission unit is expected to draw about $1.75 billion of spending in each year. Over the remaining three years of the forecast, 2018-2020, spending on transmission is expected to drop to about $1.1 billion per year.
Overall capital spending by the utility is expected to drop during 2018-2020, though there are several potential growth projects in which the utility could invest during those years, LaRossa told investors March 11.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
PSEG has two subsidiaries--a regulated electric and gas utility in New Jersey and a competitive power generation business, which today operates in three regional markets: New England, New York and the PJM (Pennsylvania-New Jersey-Maryland) interconnection.
Most of the planned capital outlays during 2016-2020 will be invested in PSEG's utility unit, Public Service Electric & Gas (PSE&G), which serves four million electric and gas customers in New Jersey. The remainder, about $4 billion, will be invested in PSEG's competitive power unit, which is building new gas-fired, combined-cycle generation in all three competitive East Coast markets.
PSEG Power, the competitive generation unit, is building a 755-megawatt (MW) generator in Maryland, the Keys Energy Center, at a cost of between $825 million and $875 million, William Levis, the president and chief operating officer at PSEG Power, told investors and analysts March 11. That plant, which kicked off construction in 2015, is expected to be operating by 2018. PSEG Power also is building a 540-MW unit, Sewaren Unit 7, in New Jersey, at a cost of between $625 million and $675 million, he added. Construction is scheduled to begin next month and be complete by 2018. PSEG Power also plans to build Bridgeport Harbor Unit 5, in Connecticut, at a cost of between $525 million and $575 million. Construction of that unit addition is expected to begin in early 2017 and be complete by April 2019, Levis said.
The company plans to invest about $7.1 billion in its regulated electric transmission business between 2016 and 2020, according to Ralph LaRossa, president and chief operating officer for PSE&G, the utility business. One of the largest transmission projects will be the Bergen-Linden Corridor project, but the utility also plans to make investments to harden its system against severe weather and upgrade some 69-kilovolt (kV) lines.
PSE&G also expects to invest about $540 million from 2016 to 2020 in its electric distribution network to enhance reliability and resiliency, in a program it terms Energy Strong, LaRossa said. An additional $140 million will be invested in solar power during that time. Spending on energy efficiency programs is expected to total $95 million over the five-year period. LaRossa added the utility expects to invest about $905 million in its gas distribution unit to modernize and replace about 4,800 miles of cast-iron and unprotected steel main lines.
By year, PSEG's utility business plans to spend about $3 billion on capital projects in 2016 and 2017. The electric transmission unit is expected to draw about $1.75 billion of spending in each year. Over the remaining three years of the forecast, 2018-2020, spending on transmission is expected to drop to about $1.1 billion per year.
Overall capital spending by the utility is expected to drop during 2018-2020, though there are several potential growth projects in which the utility could invest during those years, LaRossa told investors March 11.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
