PSE&G

FERC's Mega-NOPR: The IOUs Respond

It comes as no surprise that regulated investor-owned utilities (IOUs) hold divergent views on the restructuring of the electric industry. Size, generation cost, transmission access, customer loyalty, and the friendliness of state regulators all factor into their individual visions of restructuring.

Joules

jü( )l, n: A unit of energy measurement equal to a watt-second.

According to a Newton-Evans Research Co. survey of 60 information system managers from gas, electric, and water utilities in more than 12 countries:

s About 45 percent of utilities surveyed plan to replace current computer systems through 1997.

s IOUs tend to spend more for information technology than their publicly operated peers: close to 3 percent of revenues.

N.J. Requires LDC to Offer Capacity Release

The New Jersey Board of Public Utilities (BPU) has approved a two-year capacity-release program for Public Service Electric and Gas Co. (PSE&G), a natural gas local distribution company (LDC), as part of an ongoing effort to unbundle gas services. Other LDCs in the state have already incorporated capacity-release programs, but PSE&G argued that it was without surplus year-round pipeline capacity. The LDC said gas marketers should obtain their own capacity at lower rates through either long-term contracts with the pipelines or through capacity release from other parties.

Salem Outage Catches Moody's Eye

The Nuclear Regulatory Commission has imposed a $600,000 civil penalty on Public Service Electric and Gas Co. (PSE&G) for six violations at the Salem Nuclear Generating Station. PSE&G, which owns and operates 42.59 percent of the plant, responded by shutting Salem down temporarily.

"We take no issue with the concerns raised by the NRC," says Leon R. Eliason, PSE&G chief nuclear officer and president of its nuclear business.

New Jersey is Cautious on NGV Investment

The New Jersey Board of Public Utilities (BPU) has once again refused to grant "blanket approval" of an investment program for natural gas vehicle (NGV) refueling stations proposed by Public Service Electric and Gas Co. (PSE&G).

PSE&G Makes Innovative Emission Reduction

Public Service Electric and Gas Co. (PSE&G) and Merck & Co. have announced a trade of emission reduction credits as part of a broad initiative to develop a market-based response to combat the ozone nonattainment problems in the Northeast. PSE&G will sell a minimum of 10 and a maximum of 75 tons of nitrogen oxide (NOx) pollution reductions, called "surplus discrete emission reductions" (SDRs), to Merck in 1995. Merck will use the SDRs to comply with environmental requirements at two industrial boilers.

Mailbag

Salt River Project has appointed Capitol Hill veteran Renee Eastman manager of federal affairs. Eastman previously served four years as a representative for Sun Company, the nation's largest independent oil refiner and marketer.

Peter M. Schwolsky, former executive v.p. at New Jersey Resources Corp., has joined Columbia Gas System as senior v.p. He will become chief legal officer of the corporation later this year.

Frontlines

Everybody's talking about electric utilities dabbling in telecommunications. That's fine. But how about vice versa? Maybe what we've really got is telephone companies (and cable television, too) getting into energy. That's different.

Company Profile

When a steel mill threatened to pull out of New Jersey and move to the Southeast where electricity rates are cheaper, Public Service Electric & Gas Co. (PSE&G) did some creative thinking.

How could it keep the mill, Co-Steel Raritan, and its 500 jobs and $36-million annual payroll in Perth Amboy, NJ?

After considerable negotiation, PSE&G proposed an experimental hourly pricing plan that lets Co-Steel Raritan take advantage of the lowest fuel costs within the Pennsylvania-New Jersey-Maryland (PJM) pool.

PSE&G Customers Can Shop Around for Gas

The New Jersey Board of Public Utilities (BPU) has approved a plan that will allow Public Service Electric and Gas Co. (PSE&G) to offer new transportation services to its commercial and industrial (C/I) natural gas customers. As a result of the BPU action, PSE&G will begin offering third-party gas transportation and other services to C/I customers regardless of size, amount of gas used, or alternate fuel capabilities. These customers may purchase gas directly from producers and marketers and arrange for PSE&G to transport and deliver the gas.