During a fireside chat at NJBIA’s recent Energy & Environment Forum about surging utility costs, PSEG CEO Ralph LaRossa discussed New Jersey’s lack of energy generation capacity and the impediments that poses to delivering power to utility customers amidst growing demand.
LaRossa, who noted 80% of PSEG’s business today is the “wires and pipes” for energy delivery, said there hasn't been a new power plant built in New Jersey in more than a decade. This “lack of momentum” for traditional power generation sources, coupled with growing user demand, means New Jersey must now import energy from other states.
“We have put a lot of extension cords into Pennsylvania,” LaRossa said. “Any of the extra load we are now servicing is coming from Pennsylvania. It’s a simple supply and demand equation. And there’s not a market signal that’s telling generators to come in and build.
LaRossa said New Jersey needs to produce an integrated resource plan that details how electric utilities will reliably meet customer demand for the future. He pointed out that the state hasn’t had an integrated resource plan since 2000.
“The Energy Master Plan is not a complete integrated resource plan,” LaRossa said. “And no offense to any administration, we can’t look back and complain about that. What we need to do is look forward and what we’re advocating for very strongly is that we need to get together and work on that plan.”
Go here to watch view LaRossa’s entire fireside chat with NJBIA President and CEO Michele Siekerka at NJBIA’s two-day Energy and Environment Forum, which drew more than 400 people last month to the DoubleTree by Hilton Somerset Hotel and Conference Center.
