UPDATE: PSE&G Marks Earth Day with a Bold New Plan Designed to Spur Investment in Solar Energy in NJ
20 April 2007 - 2:20AM
PR Newswire (US)
Proposes investing $100 million in initiative that would help meet
aggressive renewable energy goals laid out in the state's Energy
Master Plan NEWARK, N.J., April 19 /PRNewswire-FirstCall/ -- Public
Service Electric and Gas (PSE&G) today unveiled an initiative
designed to spur investment in solar power in New Jersey and help
meet the aggressive renewable energy goals outlined in the state's
Energy Master Plan (EMP) proposal. It is the first of a number of
new plans to be detailed by the company this year as part of a
long-term, comprehensive strategy to combat climate change. Details
of the program were included in a regulatory filing made today with
the New Jersey Board of Public Utilities (BPU). If the plan is
approved by regulators, New Jersey could soon see a greater number
of solar panels supplying clean power to a greater number of homes
and businesses and municipal buildings - while reducing the overall
cost of developing, installing and financing solar energy systems.
Ralph Izzo, chairman and chief executive officer of Public Service
Enterprise Group, which is PSE&G's parent company, said the
utility was making the announcement this week in recognition of
Sunday's Earth Day celebration. "Earth Day emphasizes the
importance of addressing climate issues around the world, and our
proposed solar initiative highlights our intention to be a leader
here in New Jersey in finding innovative ways to improve the
environment," Izzo said. PSE&G's solar initiative addresses the
aggressive goals put forth by the State through the EMP process,
and by the BPU through the renewable portfolio standard (RPS). Both
call for the ability to meet 20 percent of the State's energy needs
with renewable energy by the year 2020. Solar is a Class I
renewable resource. Under the plan, PSE&G will invest
approximately $100 million over the next two years to help finance
the installation of solar systems on homes, businesses and
municipal buildings throughout its service area. The funding will
provide a source of stable, secure capital to spur additional
investment in solar energy. If approved by the BPU, the initiative
could begin by the end of this year and support 30 megawatts of
solar power in the following two years, fulfilling about 50 percent
of the RPS requirements in PSE&G's service area for the years
2009 and 2010. That's enough electricity to power 24,000 homes and,
in terms of CO2 emissions, is the equivalent of removing about
3,700 cars from the road. "Climate change is a reality that needs
to be addressed now. We need fresh thinking if we are to begin to
tackle this challenge and reverse the trend," Izzo said. "We are
prepared to invest a substantial amount of capital, and we have
developed an innovative regulatory approach to provide new avenues
and incentives for investment in renewable energy. This initiative
will help address our future energy needs with renewable resources
in a way that reduces CO2 emissions." PSE&G's proposal has
garnered support from the solar industry, environmental advocates
and the business community. "This is an historic and groundbreaking
initiative, and we couldn't be more supportive," said Thomas
Leyden, president of the Mid-Atlantic Solar Energy Industries
Association (MSEIA). "This represents the beginning of a new
relationship between the renewable community and utilities." MSEIA
is a non- profit organization dedicated to promoting the benefits
of renewable energy. It is made up of manufacturers, developers,
contractors, installers, architects, engineers, consultants and
other industry professionals "One of the biggest barriers faced by
solar enthusiasts is the lack of financing. While these systems are
a great investment, they require significant up-front capital,"
Leyden said. "PSE&G is a well-known, trusted company with a
large and diverse customer base. Their willingness to promote the
value and availability of solar, coupled with their ability to
provide long- term financing, means that there will be greater
penetration in the market. This is a recipe for success." (Attached
is a list of organizations that support PSE&G's solar
initiative.) "NRDC has been a long-time supporter of solar energy -
especially to meet the growing summer peak demand," said Ashok
Gupta, Air & Energy Program Director of the Natural Resources
Defense Council. "But more investment is needed to make this clean
energy available to homes and businesses. We're pleased that a
hometown utility like PSE&G is willing to make that investment
and make solar part of their clean energy portfolio." Joan
Verplanck, president of the New Jersey Chamber of Commerce, said,
"PSE&G has launched this program to make it attractive and easy
for business owners to seriously consider solar energy. By putting
in place the financial mechanism for companies to pay for this
technology over an extended period of time, PSE&G is making
what was once an option only for large companies with significant
financial resources into an affordable option for companies large
and small." PSE&G's solar initiative would be open to all of
its customers, including low-income, residential, commercial,
industrial and municipal/governmental. In brief, here's how it
would work: PSE&G would provide loans to developers to cover
approximately 40-50 percent of the cost of a solar installation
project. The loan would look a lot like a mortgage. The utility
would be repaid the principal plus interest over 15 years, a
considerably longer investment timeframe than traditional lenders
are willing to provide for solar installations. The remaining
project cost would be funded by a host customer or equity partner,
such as a bank or investor, to be eligible to collect the federal
investment tax credit. (Utilities are currently prohibited from
collecting this tax incentive.) PSE&G would be repaid in the
form of credits called Solar Renewable Energy Certificates or
SRECs, which have value in the energy marketplace. An SREC is a New
Jersey tradable product that represents the clean energy benefits
of electricity generated from a solar system. PSE&G would earn
a return to compensate the company for its full cost of capital,
plus an incentive for spurring the development of the solar market.
The solar panels would be owned by the developer or the host
customer. PSE&G's customers would continue to pay for solar
incentives through the Societal Benefit Charge (SBC) on their
monthly bill, just as they do now. If approved as filed, they won't
pay any more under PSE&G's solar initiative, since the program
will be paid for through funding that is currently earmarked for
renewable energy programs. "PSEG has been a vocal supporter and an
active participant in the EMP process from the start," Izzo said.
"We've always maintained that meeting these goals would require
redefining the role of the state's utilities and energy companies.
The plan we've put forth today does that. It recognizes that
utilities have the ability to make long-term investments that serve
the public interest, as long as there are assurances of earning
reasonable returns." PSEG has built a reputation for environmental
leadership over the last decade. Its utility was the first in the
nation to sign onto a pre-Kyoto voluntary Greenhouse Gas (GHG)
emission reduction accord with the Clinton Administration to
stabilize GHG emissions to 1990 levels by 2000. It voluntarily
committed to reducing its carbon dioxide emission rate by 18%, to
2000 levels, by the year 2008. And it has been a vocal advocate for
mandatory and meaningful GHG emission reductions on a national
basis, supporting national legislation that would reduce electric
power sector emissions to 1990 levels by 2030. Call 973-430-7734 to
request a transcript of the press availability that followed
today's announcement. Public Service Electric and Gas Company
(PSE&G) is New Jersey's oldest and largest regulated gas and
electric delivery utility, serving nearly three- quarters of the
state's population. PSE&G is the winner of the ReliabilityOne
National Achievement Award for superior electric system
reliability. PSE&G is a subsidiary of Public Service Enterprise
Group Incorporated (PSEG) (NYSE: PEG), a diversified energy company
(http://www.pseg.com/). Solar Initiative Supporters The following
organizations and individuals are supportive of PSE&G's Solar
Initiative, which was filed today with the New Jersey Board of
Public Utilities: Natural Resources Defense Council Ashok Gupta,
Air and Energy Program Director (212) 727-4462 Audubon Society Eric
Stiles, Vice President for Conservation (908) 240-9316 Conservation
Resources Inc. Mike Catania, President (908) 879-7942 The Nature
Conservancy Barbara Brummer, State Director (908) 879-7262 x350
Hackensack Riverkeeper Captain Bill Sheehan (201) 968-0808 NJ
Conservation Foundation Emile DeVito, Manager of Science &
Stewardship (908) 432-3419 Association of NJ Environmental
Commissions Sandy Batty, Executive Director (973) 539-7547 NJ
Future George Hawkins, Executive Director (609) 468-1588 NJ
Environment Lobby Michael Pisauro, Legislative Director (609)
919-9500 Clean Air-Cool Planet Adam Markham, Executive Director
Bill Burtis, Communications Director (603) 422-6464 ext. 105
(National) Solar Energy Industries Assoc. Rhone Resch, President
(202) 682-0556 Mid-Atlantic Solar Energy Industries Assoc. Susan
LeGros, Executive Director (609) 513-7295 Tom Leyden, PowerLight
Managing Director for East Coast Operations (609) 964-8900 NJ
Chamber of Commerce Joan Verplanck, President (609) 989-7888 x 114
U.S. Congressman Mike Ferguson Angie Lundberg, Press Secretary(202)
225-5361 U.S. Senator Bob Menendez Afshin Mohamadi, Press
Secretary(202) 224-4744 Assemblyman John McKeon Chair of the
Assembly Environmental Committee and Mayor of West Orange Amy
Simon, Communications Director and Legislative Aide (973) 325-4133
NJ Conference of Mayors Donald Fauerbach, Executive Director (609)
989-9216 PV Now David Hochschild, Executive Director (415) 314-8042
DATASOURCE: PSE&G CONTACT: Karen Johnson or Jenn Kramer,
+1-973-430-7734, both of PSE&G Web site: http://www.pseg.com/
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