494 broad street. newark. new jersey. 07102 973.533.0777 genova burns giantomasi webster llc the...
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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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
2Genova Burns Giantomasi Webster LLC
Existing NJ Grid
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
3Genova Burns Giantomasi Webster LLC
Proposed Renewable Generation
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
4Genova Burns Giantomasi Webster LLC
Proposed Renewable Generation
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
5Genova Burns Giantomasi Webster LLC
Proposed Renewable Generation
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
6Genova Burns Giantomasi Webster LLC
NJ Electric Imports
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
7Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
8Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
9Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
10Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
11Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
12Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
13Genova Burns Giantomasi Webster LLC
Offshore Wind• Radial v. HVDC lines• New Jersey Energy Link• Capacity pick-up from the loss of nuclear
generation at Oyster Creek in 2019
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
14Genova Burns Giantomasi Webster LLC
Hurricane Sandy• October 29, 2012 – landfall made in NJ
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
15Genova Burns Giantomasi Webster LLC
Hurricane Sandy• 7 million people left without power• 346,000 homes damaged or destroyed• 8,000 jobs estimated lost• 1,400 sunken vessels
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
16Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
17Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
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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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
19Genova Burns Giantomasi Webster LLC
The Future• Susquehanna-Roseland• North Central Reliability Project• Repower BL England• NJ Energy Link
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
20Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
21Genova Burns Giantomasi Webster LLC
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
494 Broad Street . Newark . New Jersey . 07102 WWW.GENOVABURNS.COM 973.533.0777
22Genova Burns Giantomasi Webster LLC
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