PSEG Settles for $6.6 Million Over Inaccurate Information
Public Service Electric and Gas (PSEG) has agreed to a settlement of $6.6 million due to allegations regarding the provision of inaccurate data related to a $546 million transmission project. This settlement was approved by the Federal Energy Regulatory Commission (FERC) as part of its oversight of the PJM Interconnection’s Regional Transmission Expansion Plan process.
FERC’s enforcement investigation revealed that PSEG failed to follow the agency’s rules by not delivering accurate and factual information concerning the condition of power line towers. While PSEG did not admit or deny the claims, the fine is considered minimal compared to the profits from the local project.
According to Ari Peskoe from Harvard Law School, this fine represents a “modest reduction” in PSEG’s returns, indicating a lack of rigorous checks on utility projects.
As scrutiny of local transmission projects increases, these initiatives—termed supplemental projects in PJM—face allegations of inadequate oversight from regulatory agencies. Many industry stakeholders argue that these projects, intended to support local reliability, often go without thorough evaluation.
The settlement relates to a project proposed by PSEG in 2017 to update a transmission line in New Jersey. Before its overhaul, the existing line was one of PJM’s oldest. Information provided by PSEG indicated that many towers required extensive repairs, which was contradicted by findings from its consultant.
Although FERC acknowledged inaccuracies in PSEG’s submissions and has urged improvements in documentation processes, it did not dispute the necessity of the project to maintain system reliability. The new line, completed in May 2023, is expected to enhance capacity and support additional circuits.
In conclusion, PSEG has taken steps following the investigation to refine its documentation processes for future transmission projects.