The New Jersey Board of Public Utilities (BPU) has rejected a proposal to disallow from rates "potentially stranded costs" incurred by Atlantic City Electric Co., an electric utility, under...
N.J. Utilities Must Market Test Power Proposals
The New Jersey Board of Public Utilities (BPU) has announced an interim policy requiring electric utilities to "market test" all proposals for new capacity additions. The requirement grew out of a highly contentious proceeding involving a failed proposal by Jersey Central Power & Light Co. to purchase an interest in generating facilities from Duquesne Power & Light Co. in Pennsylvania and to construct major transmission facilities.
The BPU ruled that utilities must submit market-comparison data on all proposed capacity additions, including utility construction, plant repowerings, and long-term purchases. It said the interim rule was needed to ensure that ratepayers receive the best possible price for power, pending the completion of new rules for integrated resource planning. Re Proposed Supply Side Procurement Model, Docket No. EX94120578, Dec. 21, 1994 (N.J.B.P.U.).
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