PSE&G Proposes Experimental Energy Pricing Service to Preserve Steel Mill and Jobs

Public Service Electric and Gas Company (PSE&G) has submitted a plan to the New Jersey Board of Public Utilities (BPU) to approve a competitive electric rate for Co-Steel Raritan, a steel mill in Perth Amboy, New Jersey. The proposal includes a new experimental hourly energy pricing service rate schedule that would result in a significant reduction in Co-Steel Raritan's annual electric bill, allowing the company to remain in New Jersey and invest $37 million in refurbishing and upgrading its facility.

Key Takeaways:

• PSE&G has proposed an experimental hourly energy pricing service rate schedule to provide Co-Steel Raritan with a competitive electric rate, resulting in a $7.3 million reduction in its annual $26 million electric bill.
• The plan aims to keep Co-Steel Raritan's 500 jobs in Perth Amboy, New Jersey, and facilitate its expansion and upgrade without impacting PSE&G's other electric or gas ratepayers.
• In return for the new rate, Co-Steel Raritan has agreed to invest $37 million in refurbishing and upgrading its facility and remain in New Jersey.
• The steel mill, PSE&G's second-largest customer at a single location, has an 80 megawatt peak electric load and consumes 440,000 megawatthours of electricity annually.
• Co-Steel Raritan employs 500 people, maintains a $36 million annual payroll, and purchases $50 million worth of goods and services from New Jersey companies annually.
• The company recycles approximately 730,000 tons of scrap metal a year and pays around $2.5 million in state and local taxes.

Statistics:

• $7.3 million: The approximate annual reduction in Co-Steel Raritan's electric bill.
• $26 million: The annual electric bill of Co-Steel Raritan before the proposed rate change.
• $37 million: The amount Co-Steel Raritan has agreed to invest in refurbishing and upgrading its facility.
• 500: The number of people employed by Co-Steel Raritan.
• $36 million: The annual payroll of Co-Steel Raritan.
• $50 million: The amount Co-Steel Raritan purchases in goods and services from New Jersey companies annually.
• 440,000: The amount of megawatthours of electricity Co-Steel Raritan consumes annually.
• 80: The megawatt peak electric load of the steel mill.
• $2.5 million: The amount Co-Steel Raritan pays in state and local taxes annually.
• 730,000: The number of tons of scrap metal Co-Steel Raritan recycles annually.

Sources:

• Public Service Electric and Gas Company (PSE&G)
• New Jersey Board of Public Utilities (BPU)
• Co-Steel Raritan
• Press release: "PSE&G Proposes Experimental Energy Pricing Service to Preserve Steel Mill and Jobs" (January 17, 1995)