PSEG Power, a wholly owned subsidiary of Public Service Enterprise Group, has initiated plans with electricity supplier PJM for the construction of up to 400MW of new gas-fired peaking capacity.
Depending on the timing and outcome of the process, Public Service Enterprise Group (PSEG) Power intends to bid this capacity into PJM’s Reliability Pricing Model (RPM) Base Residual Auctions in 2008 for supply beginning as early as 2010.
William Levis, president of PSEG Power, said, The RPM auction process is working well. The pricing provided by the auctions held in 2007 provides sufficient return to support an expansion of PSEG Power’s investment in new peaking capacity. The auction pricing also has increased our focus on the operating performance of our reliability based units, resulting in lower forced outage rates at PSEG Power’s existing fleet.
The new capacity will complement PSEG Power’s existing fleet of 13,600MW, improve the overall efficiency of the fleet and enhance reliability, in particular for New Jersey customers, where PJM indicates additional energy supply is needed.