2011 DRAFT ENERGY MASTER PLAN
TABLE OF CONTENTS
1 Introduction.............................................................................................................................12 Executive Summary................................................................................................................33 Energy Master Plan Background..........................................................................................113.1 The 2011 Update Process.............................................................................................113.2 CEEEP Analysis...........................................................................................................123.3 Implementation of the EMP..........................................................................................134 New Jersey’s Electric Industry.............................................................................................144.1 The New Jersey Power System.....................................................................................144.2 The PJM Market...........................................................................................................164.2.1 Transmission System................................................................................................184.2.2 Energy Market..........................................................................................................204.2.3 Capacity Market........................................................................................................214.3 EDECA and Deregulation............................................................................................224.4 New Jersey Market Dynamics......................................................................................234.5 Load Growth.................................................................................................................284.6 Existing In-State Capacity............................................................................................304.7 Generation Addition and Retirement............................................................................334.7.1 Development of New Generation Facilities..............................................................334.7.2 Generator Retirements..............................................................................................354.8 Pricing Dynamics..........................................................................................................374.9 Retail Electricity Market and Customer Classes..........................................................384.9.1 Basic Generation Service Auction Process...............................................................394.9.2 Competitive Retail Supply........................................................................................404.9.3 Renewable Portfolio Standard..................................................................................454.10 Understanding Retail Electric Costs.............................................................................474.10.1 Basic Generation Service Components.................................................................484.10.2 State and Federal Charges and Policies................................................................504.11 EE and DR Program Evaluation...................................................................................545 Natural Gas and Other Fuels.................................................................................................565.1 New Jersey Gas Distribution Companies.....................................................................565.2 Sources of Natural Gas.................................................................................................565.3 Home Heating Oil.........................................................................................................585.4 Transportation Fuels.....................................................................................................595.5 Fuel Market Outlook.....................................................................................................615.6 Understanding Retail Natural Gas Costs......................................................................635.6.1 Basic Gas Supply Service Components....................................................................645.6.2 Distribution Charges.................................................................................................655.6.3 State and Federal Charges and Policies....................................................................65
6 Recent Legislative and Regulatory Initiatives......................................................................676.1 Initiatives to Promote a Diverse Portfolio of Efficient Generation Resources.............676.2 Initiatives to Promote Renewable Energy....................................................................696.3 Initiatives to Promote Energy Efficiency and Conservation........................................716.4 Other New and Pending Legislation.............................................................................727 2011 Plan for Action.............................................................................................................737.1 In-State Electricity Resources.......................................................................................757.1.1 Advantages of a Diverse Supply Portfolio................................................................757.1.2 Advantages of New Baseload and Mid-Merit Generation........................................767.1.3 Nuclear Generation to Satisfy the Global Warming Response Act..........................777.1.4 Transmission Solutions and Out-of-State Resources................................................787.1.5 Policy Direction and Recommendations...................................................................787.2 Cost-Effective Renewable Resources...........................................................................817.2.1 Subsidies for Renewable Resources.........................................................................827.2.2 Solar PV Development.............................................................................................837.2.3 Solar RPS and Economics........................................................................................867.2.4 Onshore and Offshore Wind Development...............................................................957.2.5 Biomass Potential in New Jersey..............................................................................987.2.6 Policy Direction and Recommendations.................................................................1017.3 Cost-Effective Conservation, Energy Efficiency, and Peak Load Reduction............1047.3.1 Peak Demand and Energy Reduction Goals...........................................................1057.3.2 Energy Efficiency and Conservation......................................................................1067.3.3 Peak Demand Reduction.........................................................................................1087.3.4 Policy Direction and Recommendations.................................................................1107.4 Innovative Energy Technologies and Businesses.......................................................1167.4.1 Energy Technologies to Simulate Economic Growth.............................................1167.4.2 Innovative Technology Opportunities in Transportation........................................1227.4.3 Policy Direction and Recommendations.................................................................125
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2011 Draft Energy Master Plan
Governor Chris Christie released the State’s draft 2011 Energy Master Plan (EMP), a greener and more affordable vision for the use, management, and development of energy in New Jersey over the next decade and beyond. The…
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