PSEG Solar Source, a subsidiary of
Public Service Enterprise Group Inc.
(
PEG
) has acquired the solar project worth $50 million in Milford,
Delaware from juwi solar Inc. ("JSI"). Concurrently, JSI agreed to
operate and maintain the services of the project apart from
providing engineering and managing the construction of the
facility.
Located on 80 acres of land in Kent County, Delaware, the solar
project has an electric generation capacity of 15 MW DC (12 MW AC).
Under a purchase power agreement, the energy and solar renewable
energy credits will be sold to Delaware Municipal Electric
Corporation. Juwi solar will begin the construction of the project
in September and expects it to be completed in the fourth quarter
of 2012.
Post construction, this solar project will be the largest solar
farm in the state of Delaware. During its construction period, the
solar project will create approximately 100 jobs during
construction.
Public Service Enterprise continues to invest in projects that
provide clean, emissions-free solar energy in order to meet solar
and renewable targets and also have supportive local and state
policies. The Milford solar project matches with the company's
requirements.
Four other projects in collaboration with JSI that fall in line
with the company's goals include: a 25.0 MW DC Queen Creek Solar
Farm in Queen Creek Arizona, 12.0 MW DC Wyandot Solar Farm in
Wyandot, Ohio, a 15.0 MW DC Jacksonville Solar Farm spread over an
area of 100 acres in Jacksonville, Florida and a 2.2 MW DC Mars
Solar Garden facility located adjacent to the Mars Snackfood's US
headquarters in New Jersey.
Public Service Enterprise Group has a solid portfolio of regulated
and non-regulated utility assets that offer a stable earnings base
and substantial long-term growth potential. Moreover, this project
has added to the company's diversified geographical base. Over the
longer run, the company's growth is expected to be driven by a
low-cost nuclear fleet, assumed rate relief, operational
excellence, disciplined investment and added generating capacities.
However, we prefer to remain on the sidelines due to increasing
cost of coal, higher pension & financial costs and power-price
volatility. Like its peer,
Entergy Corporation
(
ETR
), the company presently retains a short-term Zacks #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the
stock.
Based in Newark, New Jersey, Public Service Enterprise Group
Incorporated is a diversified utility holding company. The
company's operations are mostly located in the Northeastern and
Mid-Atlantic parts of the U.S. Public Service Enterprise
principally operates through three key subsidiaries: Public Service
Electric and Gas Company (PSE&G), PSEG Power LLC (PSEG Power)
and PSEG Energy Holdings LLC (PSEG Energy). PSEG Energy Holdings
has two main unregulated energy-related businesses: PSEG Global and
PSEG Resources. PSEG Solar Source LLC is a wholly owned subsidiary
of PSEG Global. It was formed to develop, construct, own and
operate large-scale solar facilities outside of the PSE&G's
regulated service area.
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