Why Make NJ Energy Strong? Sandy, Hurricane Irene and the October - - PowerPoint PPT Presentation

Why Make NJ Energy Strong?

• Sandy, Hurricane Irene and the October

2011 snow storm represent extreme weather patterns that may become commonplace.

• For example, more than 30 distribution

facilities, which had never previously flooded, were impacted by Sandy and/or Irene, leaving more than 800,000 people without power during Sandy.

• In light of these new weather patterns,

the state’s entire energy infrastructure needs to be rethought.

Why Make NJ Energy Strong: Cost of Inaction is TOO High…

• ..fo

for businesses and families to bear.

– Hundreds of millions of dollars in lost revenue — grocery stores, restaurants etc. -- will never be recovered. – If several switching stations hadn’t been flooded: – Newark Airport would have had the power needed to operate. – The refineries would have had the power needed to operate. – Hundreds of small businesses in Hoboken —just to name one town--wouldn’t still be trying to recover from the loss of business.

Reliability Isn’t Enough Anymore

• We’re proud of being named the most reliable utility in the

country in 5 of the past 8 years, including 2012.

• And the region’s most reliable for the past 11 consecutive years.
• But, the extremes of weather we’re now seeing on an increasingly

frequent basis eequire a new level of resiliency to natural disaster that wasn’t needed in the past.

• We need to “harden our systems” and make them Energy Strong.

“Energy Strong” Proposal

• Filed on February 20, 2013 with NJ BPU.
• $3.9 billion investment over 10 years to make distribution

systems more resilient to natural disasters.

• Proposes to invest $2.6 billion in critical upgrades during the next

five years including – $1.7 billion to protect the 31 switching and substations including Sewaren, Newark, Linden, Bayonne and Hoboken that were damaged by recent storms.

• Potential to invest an additional $1.3 billion dollars in the

subsequent five years.

Energy Strong also would provide…

• $1.04 billion to replace and modernize 750 miles of low-pressure

cast iron gas mains in or near flood areas.

• $454 million to deploy smart grid technologies to better monitor

system operations to increase our ability to swiftly make repairs.

• $215 million to improve pole distribution systems.
• $200 million to create redundancy in the system, reducing
• utages when damage occurs.
• $140 million to protect 9 natural gas metering stations and a

liquefied natural gas station affected by Sandy or located in flood zones.

• $60 million to move 20 miles of overhead electric distribution

lines underground.

Make NJ Energy Strong

• We can continue “business as usual”

– and just make incremental improvements and repairs to our electric and gas systems as we have always done.

• Or we can be truly forward-looking

– And make substantial investments that will help our state be better prepared for the next Irene, Sandy or other catastrophic event.

• Investments in Energy Infrastructure are a differentiator for NJ.
• They will make NJ more economically competitive and position

us for growth.

The Time is Right

• These investments can be made in the next 10 years while

keeping residential or business customer bills essentially flat – Deregulation charges expiring in 2014 and 2016 will cover the cost of electric infrastructure investment. – Low natural gas prices and available labor make this the right time. – The costs of these investments will be spread out over the 40- to 60-year life of the assets.

• Economic benefits

– If approved, Energy Strong will create 5,800 jobs. – Energy Strong helps support New Jersey’s economy.