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 outages 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.
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