1. New Jersey
Electricity Market Profile
Presented by Lyle Birkey
and Andrew Fishbein

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. New Jersey Power Utilities/Companies
1) Atlantic City Electric
2) Public Service Electric & Gas
3) Jersey Central Power & Light
4) Orange Rockland Electric

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. 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. 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. 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. 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. Regional Transmission Connections, Constraints

10. In-state v. imported power
Demand 40% higher than indigenous capacity
25% imported

11. In-state generation capacity
17,000 MW capacity
20,500 MW peak load

12. Generation and fuel mix
55,000 GW in 2010
50% nuclear
38% natural gas
8% coal
1% renewables (wind, solar,
hydro)

13. Renewable generation

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. 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. 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