DAY 946
Ratepayers are completely isolated from risk
Petitioner has proposed the following mechanisms be part of the payment mechanism
Petitioner has accepted all risk associated with securing the Investment Tax Credit and Department of Energy Grant
Power is only paid for when project becomes operational
Payments are made only for power produced
Payments are made based on a fixed price schedule
Power is only paid for once the Petitioner has secured a Type A turbine certification from DNV
Petitioner absorbs all risk associated with permitting, construction, financing, performance, operations, maintenance, and decommissioning.
Petitioner has proposed abandonment and decommissioning security to hold ratepayers and the State harmless in the unlikely event of a Project failure.
Financial integrity and access to capital to allow for reasonable expectation of completion of project construction
Petitioner has financing commitment for 100% of project capital costs from a near Fortune 1000 company which has revenues in excess of $1.6 billion and is larger than Atlantic City Electric, South Jersey Industries or New Jersey American Water Company. Construction funds will be securitized prior to construction in order to assure availability.
Petitioner has agreed to post a pre-construction security in an amount that demonstrates the balance of capital necessary to build the project is fully available
The project offers a fair balance of risks and rewards between ratepayers and shareholders
• Ratepayers have been isolated from risks
• Petitioner has proposed a rate of return lower than market and within the range of rates of return for utility companies.
• Petitioner has offered a guaranteed quantity of New Jersey direct spending to ensure benefits accrue as expected
• Petitioner includes a turbine 27.5% less expensive than the Reference turbine
• Petitioner includes low cost financing
• Petitioner offers lowest power price of any domestic demonstration project
Ratepayers are completely isolated from risk
Petitioner has proposed the following mechanisms be part of the payment mechanism
Petitioner has accepted all risk associated with securing the Investment Tax Credit and Department of Energy Grant
Power is only paid for when project becomes operational
Payments are made only for power produced
Payments are made based on a fixed price schedule
Power is only paid for once the Petitioner has secured a Type A turbine certification from DNV
Petitioner absorbs all risk associated with permitting, construction, financing, performance, operations, maintenance, and decommissioning.
Petitioner has proposed abandonment and decommissioning security to hold ratepayers and the State harmless in the unlikely event of a Project failure.
Financial integrity and access to capital to allow for reasonable expectation of completion of project construction
Petitioner has financing commitment for 100% of project capital costs from a near Fortune 1000 company which has revenues in excess of $1.6 billion and is larger than Atlantic City Electric, South Jersey Industries or New Jersey American Water Company. Construction funds will be securitized prior to construction in order to assure availability.
Petitioner has agreed to post a pre-construction security in an amount that demonstrates the balance of capital necessary to build the project is fully available
The project offers a fair balance of risks and rewards between ratepayers and shareholders
• Ratepayers have been isolated from risks
• Petitioner has proposed a rate of return lower than market and within the range of rates of return for utility companies.
• Petitioner has offered a guaranteed quantity of New Jersey direct spending to ensure benefits accrue as expected
• Petitioner includes a turbine 27.5% less expensive than the Reference turbine
• Petitioner includes low cost financing
• Petitioner offers lowest power price of any domestic demonstration project