494 Broad Street. Newark. New Jersey. 07102 973.533.0777 Genova Burns Giantomasi Webster LLC The Electric Grid: OSW Integration and

494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777

Genova Burns Giantomasi Webster LLC

The Electric Grid: OSW Integration and Storm-Hardening

in New Jersey

Kenneth J. SheehanDirector, Energy and Utility Law Practice


2Genova Burns Giantomasi Webster LLC

Existing NJ Grid



Proposed Renewable Generation









NJ Electric Imports



2011 Energy Master Plan

• New Jersey’s Energy Master Plan Statute, N.J.S.A. 52:27F-14

• Released by the Christie Administration, serves as the “roadmap” for State development.–Reduce the cost of energy – Increase the value of renewable and energy

efficiency programs



2011 Energy Master Plan

• “Promote a diverse portfolio of new, clean, in-State generation”

• Released by the Christie Administration, serves as the “roadmap” for State development.–Reduce the cost of energy – Increase the value of renewable and energy

efficiency programs



Connected to the distribution system

• Following issues with the interconnection of solar facilities within certain NJ territories, the legislature modified the statutory language to allow “directly connected to the electric grid at 69 kilovolts or less, regardless of how an electric public utility classifies that portion of its electric grid” as a solution. P.L. 2012, c. 23



Offshore Wind• The “Offshore Wind Economic Development

Act” (OWEDA) - P.L. 2010, c. 57• Develops an offshore wind renewable energy

certificate (OREC)• Provided for “qualified offshore wind project”

= Atlantic Ocean and connected into New Jersey

• Economic development is key component



Offshore Wind• Wind carve-out to support at least 1,100

megawatts of generation• Carved-out of Class I renewable requirement• Percentage set shall not be reduced by the

Board for a period of at least 20 years



Offshore Wind• OREC set by application process, designed to

ensure a known economic flow for an offshore wind project

• No OREC paid unless energy is produced• Once an OREC price is set, it may not be

changed without agreement by the developer = NUG contract



Offshore Wind• Radial v. HVDC lines• New Jersey Energy Link• Capacity pick-up from the loss of nuclear

generation at Oyster Creek in 2019



Hurricane Sandy• October 29, 2012 – landfall made in NJ



Hurricane Sandy• 7 million people left without power• 346,000 homes damaged or destroyed• 8,000 jobs estimated lost• 1,400 sunken vessels



Hurricane Sandy• Expect actions from the Board, the Legislature,

and the individual utilities• Key issues: underground facilities; substation

flooding; vegetation management; capital expenditure and upkeep



Hurricane Sandy• Example – PSE&G’s Energy Strong• $1.7 billion to raise, relocate or protect 31

electric switching and substations affected by recent storms as well as those in newly designated flood zones.

• $454 million for smart grid technologies that will add intelligence to the system and increase the utility’s ability to detect problems and make fixes



Hurricane Sandy• $200 million to create additional redundancy

in the system, reducing both and amount and the time of outages

• $60 million to bury 20 miles of overhead electric distribution lines in areas that could see the biggest benefit



The Future• Susquehanna-Roseland• North Central Reliability Project• Repower BL England• NJ Energy Link



Information

• New Jersey Board of Public Utilities - http://www.nj.gov/bpu/

• NJ EMP - http://nj.gov/emp/docs/pdf/2011_Final_Energy_Master_Plan.pdf

• PSE&G Energy Strong - http://www.pseg.com/info/media/energy_strong/press_kit/index.jsp

http://www.nj.gov/bpu/

http://nj.gov/emp/docs/pdf/2011_Final_Energy_Master_Plan.pdf



http://www.pseg.com/info/media/energy_strong/press_kit/index.jsp

http://www.pseg.com/info/media/energy_strong/press_kit/index.jsp



Bio• Kenneth J. Sheehan, Counsel in the Firm’s Newark, New Jersey office, is

the Director of the Energy and Utility Law Practice Group. Prior to joining Genova Burns Giantomasi Webster, Mr. Sheehan served as the Chief Counsel of the New Jersey Board of Public Utilities, where he provided advice to the members of the Board, other cabinet-level officials, and the Executive Branch. In addition, Mr. Sheehan has served as both a Deputy Attorney general and the Section Chief of the Public Utilities Section in the Division of Law. Mr. Sheehan concentrates his practice in those fields associated with public utilities on a State and federal level, including: electric and gas, water, waste-water, traditional and clean energy, telecommunications, and cable television.

• Email: [email protected] / Phone: 973.646.3275

mailto:[email protected]



Firm InfoPRACTICE AREAS

• Appellate Practice• Aviation & Aircraft Law• Business Law & Commercial Transactions• Casino & Resort Development• Commercial Real Estate, Redevelopment & Environmental Law• Complex Commercial Litigation• Construction Law & Litigation• Corporate Political Activity Law• Education Law• Employment Law & Litigation• Energy and Utility Law• Health & Hospital Law• Intellectual Property Law• Labor Law• Non-Profit and Tax Exempt Organizations• Public Contract Law & Bid Protest Litigation• Trusts & Estates• Wage & Hour Compliance• White Collar Criminal Defense, Corporate Internal Investigations & Corporate Ethics

OFFICES• Newark, NJ• New York, NY• Red Bank, NJ • Camden, NJ • Philadelphia, PA • Jersey City, NJ

Documents

494 Broad Street. Newark. New Jersey. 07102 973.533.0777 Genova Burns Giantomasi Webster LLC The Electric Grid: OSW Integration and