PSE&G Invests $1.5 Billion in Transmission and Distribution for Summer Peak Reliability

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Investment in its electric and gas transmission infrastructure has allowed Public Service Electric and Gas Company (NYSE:PEG) to lower costs and maintain system reliability and meet peak summer power demand.

The $1.5 billion in investments include equipment upgrades at six switching stations and substations that use state-of-the-art, gas-insulated switch gear (GIS). Recent advances in GIS technology have made it possible to upgrade stations with additional equipment in locations where space is at a premium and has a life cycle of up to 50 years.

The GIS equipment, housed inside buildings, requires less maintenance than previous technology and has a life cycle of up to 50 years. Currently only 2% of new utility substations around the U.S. have begun using GIS. During the past year, PSE&G has installed GIS technology in stations in Branchburg, Wayne, Bayonne, Bergenfield, Ridge Field and North Bergen.

"Going into summer, customers want to know two things: Will there be enough electricity to run my air conditioner and fans? And, how much is the power going to cost me? We're pleased to have good answers to both those questions," said Ralph LaRossa, PSE&G's president and chief operating officer.

"Grid operators have said that we will have enough power to meet the demand for electricity this summer," LaRossa said. "I'm confident that we have built a delivery system strong enough and smart enough to reliably deliver that power. PSE&G will continue to make significant investments in transmission and distribution facilities to ensure the utility remains among the most reliable in the nation."

Key investments include $45.8 million to install new breakers and a new substation at Cedar Grove, and a new 69,000-volt circuit that connects to another new station in Wayne. The breakers and circuit provide increased operational flexibility in the area.

Transformers that provide additional load-serving capacity for Newark Airport took $13 million. A $23 million project is scheduled to add redundancies to 26,000-volt networks in the downtown Newark area. An $18 million transformer and breaker provides operational flexibility and additional load serving capacity at a switching station in Camden County.

Reconductoring projects to replace aging underground circuits with high-rated conductors took $75 million, and $84 million was invested in GIS equipment at the Branchburg switching station. The capacitor banks maintain system voltage to the network of switching stations and substations stabilizing the flow of electricity for residential and commercial customers. A $28 million tree-trimming project ensures adequate clearance and prevents tree contacts with energized power lines.

PSE&G is New Jersey's oldest and largest gas and electric delivery utility, serving nearly 75% of the state's population.

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