The Electric Grid: OSW
Integration and Storm-Hardening
in New Jersey
Kenneth J. Sheehan
Director, Energy and Utility Law Practice
Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Existing NJ Grid
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Proposed Renewable Generation
3
Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Proposed Renewable Generation
4
Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Proposed Renewable Generation
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
NJ Electric Imports
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
2011 Energy Master Plan
• “Promote a diverse portfolio of new, clean, inState 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
8
Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Offshore Wind
• Radial v. HVDC lines
• New Jersey Energy Link
• Capacity pick-up from the loss of nuclear
generation at Oyster Creek in 2019
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Hurricane Sandy
• October 29, 2012 – landfall made in NJ
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Hurricane Sandy
• 7 million people left without power
• 346,000 homes damaged or destroyed
• 8,000 jobs estimated lost
• 1,400 sunken vessels
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
The Future
• Susquehanna-Roseland
• North Central Reliability Project
• Repower BL England
• NJ Energy Link
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
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
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
WWW.GENOVABURNS.COM
973.533.0777
Firm Info
PRACTICE AREAS
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Appellate Practice
Aviation & Aircraft Law
Business Law & Commercial Transactions
Casino & Resort Development
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Complex Commercial Litigation
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Public Contract Law & Bid Protest Litigation
Trusts & Estates
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Corporate Ethics
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Genova Burns Giantomasi Webster LLC
494 Broad Street . Newark . New Jersey . 07102
OFFICES
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Newark, NJ
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New York, NY
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Red Bank, NJ
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Camden, NJ
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Philadelphia, PA
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Jersey City, NJ
WWW.GENOVABURNS.COM
973.533.0777