The New Jersey Board of Public Utilities (BPU) has approved Jersey Central Power and Light Co.'s offer to help a local qualifying cogeneration facility (QF) switch its status to that of an exempt wholesale generator (EWG). The QF, NRG Generating (U.S.), Inc., a subsidiary of Northern States Power Co., seeks the change in classification due to concerns about potential future reductions in the need for steam at its host industrial facility owned by Du Pont de Nemours and Co. NRG plans to form a new subsidiary to purchase its power as an "inside the fence" retail customer and then resell it to Du Pont. (Under the Energy Policy Act of 1992, an EWG can only sell power at wholesale. Jersey Central's approval of the plan is required under its purchased-power agreement with the QF.)
According to the BPU, forming the new subsidiary will facilitate a recently initiated restructuring of the utility's purchased-power agreement with NRG and will not affect ratepayers. Finding that all of the proposed transactions between the QF and its new affiliate would be located on property owned by Du Pont and leased to NRG, the BPU concluded that it would not seek to regulate the newly formed company as a public utility. Re Jersey Central Power and Light Co., Docket No. EM86121345, May 23, 1996 (N.J.B.P.U.).
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