The New Jersey Board of Public Utilities approved three Standard Offer Capacity Agreement (SOCA) awards to build new mid-merit electric generation facilities equaling 1,948.4 MW of unforced capacity.
The three generation projects, to be located in Newark, Old Bridge and Woodbridge, were recommended to the N.J. Board of Public Utilities Commissioners by Levitan & Associates Inc. in its role as Long-Term Capacity Agreement Pilot Program agent.
On Jan. 28, 2011, Governor Chris Christie signed a law establishing the program to promote construction of baseload and mid-merit electric generation facilities to improve reliability of the PJM Grid within New Jersey. On Feb. 10, the Board issued an order initiating a proceeding to implement the actions required by the LCAPP Law and selecting Levitan as the LCAPP agent.
On March 15, LEvitan issued an initial recommendation. As a result of the Board’s 4-0 vote, the state’s four electric utilities will begin the process of signing contracts with the following generators:
- Newark Energy Center, a 625 MW combined cycle natural gas-fired power plant being developed by Hess Newark LLC
- Old Bridge Clean Energy Center, a 660.1 MW combined cycle natural gas-fired power plant being developed by New Jersey Power Development LLC
- Woodbridge Energy Center, a 663.4 MW combined cycle natural gas-fired power plant being developed by CPV Shore LLC.
Auction clearing prices for capacity in New Jersey are as high as nine times the same price in other parts of PJM's territory. The pilot program offers developers a guaranteed capacity price for up to 15 years, limited by law to 2,000 MW of new generation.
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