The plan was divulged by PSEG CEO Ralph Izzo as part of his remarks at an environmental conference in Newark yesterday. It's also part of a larger effort to add upwards of 1,000 MW of gas-fired generating capacity to PSEG's system-wide operations, according to Izzo.
The plant and the larger capacity-add has multiple purposes, say PSEG officials. One is the increasing demand for power in Northern New Jersey. The second, according to sources, is to take advantage of a new pricing plan put in place last year by PJM Interconnection that offers so-called capacity payments to utilities that pour excess power into the regional grid for use at peak times.
PJM Interconnection is the regional organization that coordinates the operation of a regional power grid covering 13 states in the Eastern US. Construction on the plant expansion here is expected to begin immediately.
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