PSE&G's $8.1 billion investment in its infrastructure in New Jersey will end up boosting the state's economy, creating thousands of jobs and generating revenue for the government, according a report released Wednesday.
The Newark-based utility held a press conference in New Brunswick to talk about the results of an economic analysis done of its upgrades of its electric transmission network by Rutgers University.
PSE&G's 10-year capital program, which ends in 2021, will "support" 6,000 jobs annually. Nearly 60,000 "job years" will be created during that decade, with a job year is equal to one worker employed for one year, according to the study. The utility's investment also will generate more than $4.3 billion in salary and benefits and more than $640 million in state and local government revenue, the study found.
"PSE&G's annual capital expenditures are a large and continuous economic engine for New Jersey," Joseph Seneca, professor at the Rutgers Edward J. Bloustein School of Planning and Public Policy and co-author of the study, said in a statement. "The aggregate impact from PSE&G's portfolio of capital investments will increase state GDP by an estimated $6.6 billion and drive much-needed economic growth for the state on a sustained basis."
PSE&G's capital spending will impact employment across various sectors, initially directly supporting jobs and businesses in construction, engineering and manufacturing, according to Seneca. The effect will then ripple through the broader economy, generating indirect employment in retail, transportation and services.
The New Jersey Sierra Club was critical of the report, and referred to PSE&G as "Pure Spin Energy Group" in a statement Wednesday.
"The company makes more money from building these power lines than it does from selling electricity," state Sierra Club Director Jeff Tittel said. "Since they are guaranteed a 12 percent rate of return from these $8 billion in transmission projects it will mean $1 billion in profits from ratepayers for the company. Many of these power lines cut through environmentally sensitive areas and open spaces ... These power lines promote the importation of dirty electricity made from coal and other fossil fuels. It undermines investment in clean energy and energy efficiency in New Jersey."
