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PSEG Power plans 400 MW of gas-fired peakers

PSEG Power, a unit of Public Service Energy Group Power, could build up to 400 MW of new gas-fired peaking capacity. PSEG Power began a process to bid this capacity into PJM Interconnection’s Reliability Pricing Model (RPM) Base Residual Auctions in 2008 for supply beginning as early as 2010. PJM, a regional transmission organization operating in northern and eastern states in the US, received FERC approval for the RPM in December 2006.

PSEG Power asked the PJM to determine its ability to add up to 1,000 MW of new gas-fired capacity at some of its existing generating stations located in the Eastern MAAC reliability region. The cost to build 300 to 400 MW of new capacity could be in the range of $250-$350 million.