Project Finance Copying and distributing are prohibited without permission of the publisher

Talking Shop

01 June 2001

Who says that utility and generating arms can't get along? PSEG has restructured, but is taking the deregulation challenge one step at a time says Robert Busch, president, PSEG Energy Services

Read more: [project finance] [project finance] [BOT]

New Jersey is great place to locate a power company. The PJM power region is widely acknowledged to be the best functioning and most liquid power pool in the United States, and over the Hudson River lies New York City, a power-hungry and supply-constrained metropolis where Orion Power and Dynegy, amongst others, have been able to make a killing. PSEG, New Jersey's principal utility, has survived the rigours of deregulation more or less intact and is still on speaking terms with the state's utilities' board.

But earnings growth now has to come from the unregulated side, and PSEG needs to unlock the value of its generating assets without upsetting the delicate regulatory compromise agreed over the last two years. PSEG was not asked to sell off any of its generating assets, largely because outside generators had been operating in the region for some time, simply to transfer them to an unregulated subsidiary in 1999. ...


Upcoming Events

Change font size: Switch to default font size Switch to medium font size Switch to large font size