Apr 16, 2009 1:57 pm US/Eastern
NJ Regulators OK $965M In Utility Improvements
NEWARK (AP) ―
State regulators on Thursday approved spending nearly $1 billion on energy infrastructure projects that will create hundreds of jobs.
The projects range from replacing aging underground cables and electrical transformers to installing more energy efficient streetlights at a total cost of $956 million, a bill to be paid by five utilities and, ultimately, their customers.
Officials estimate customers' bills will increase 75 cents to $1 a month to pay for the projects.
In October, Gov. Jon Corzine had asked state utilities to accelerate capital spending to create jobs and stimulate the economy. The state Board of Public Utilities, which approved the projects by a 4-1 vote Thursday, estimates the projects will result in the hiring of 1,302 employees and contractors.
Among them is David Mager. The 34-year-old Stirling resident has been out of work since the week before Christmas, when his employer for the past six years shut down. His wife is also unemployed. They have a 16-month-old son.
Mager starts work as a utility mechanic apprentice at Public Service Electric and Gas on April 30. He will make $30,000 to $60,000 a year and said he is happy to have landed a secure job at a company that hasn't laid anyone off since the 1970s.
"If this hadn't come through I don't know what we were going to do," Mager said.
Regulatory approval comes at a time when New Jersey's unemployment rate has reached 8.3 percent. The state lost jobs in March for the 14th straight month.
"This is a jobs project first and foremost," board president Jeanne Fox said. "These projects will provide critical support for our economy in these fragile economic times."
Among the five utilities, New Jersey's largest, Public Service Electric and Gas, will be spending the most. PSE&G, received approval to spend $694 million on electric and gas distribution system capital projects. The PSE&G improvements are expected to produce 933 direct hires of company employees and contractors.
"We're ready to get to work," said Ralph LaRossa, president of PSE&G. "Accelerating capital investments will help improve the state's economy by stimulating the purchase of goods and services and creating new jobs."
The other utilities receiving spending approval Thursday include Elizabethtown Gas, which plans to spend $60 million and create 65 direct hires; Atlantic City Electric, which plans to spend $28 million and create 92 new hires; South Jersey Gas, which plans to spend $103 million and create 127 new hires; and New Jersey Natural Gas, which plans to spend $71 million and create 85 new hires. The Board is still considering proposals from Rockland Electric and Jersey Central Power & Light.
All the projects were either on the drawing board at the time of Corzine's request or previously had been delayed.
The board estimates the projects also would generate more than 12,000 indirect jobs.
Commissioner Elizabeth Randall, who cast the sole dissenting vote, said she was uncomfortable with those estimates and felt they were too high.
Randall noted that the Elizabethtown Gas project creates 65 direct hires, but is credited with fostering direct and indirect employment of 650 jobs. Randall said that with all the stimulus money starting to flow from the federal government, it might be best for New Jersey to wait for those funds to filter down.
Fox countered that by spending money on infrastructure now, when prices for building materials are low due to the recession, utilities can get more done for the same money.
"By putting many of these projects out to bid in a slow economy, this work can be completed at a lower cost to ratepayers," Fox said.
The infrastructure proposal was reviewed by Ron Chen, New Jersey's Public Advocate. His office said the projects will increase consumer rates less than 1 percent, an amount the office described as "minimal," given the size and impact of the projects.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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