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10/06/2008 06:45 AM

Developer Chosen for New Jersey Offshore Wind Farm

SustainableBusiness.com News

The New Jersey Board of Public Utilities (NJ BPU) Friday announced that it has chosen Garden State Offshore Energy (GSOE), a joint venture of PSEG Renewable Generation and Deepwater Wind, as the preferred developer of a 350-megawatt wind farm off the coast of New Jersey.

As the preferred developer, GSOE will proceed with evaluation of the project's environmental impacts and wind resources quality as well as begin the permitting process at both the state and federal levels.

Deepwater Wind was also chosen to build a $1 billion wind farm off the shores of Rhode Island.

GSOE's proposal calls for 96 wind turbines arranged in a rectangular grid 16 to 20 miles off the coast of Cape May and Atlantic counties (for map showing location in relation to N.J. coast, go to www.gardenstatewind.com). At this distance, the wind farm would be barely visible from shore, addressing one of the major concerns of beach communities. The wind farm could begin generating energy in 2012 with the entire project operational in 2013.

The decision was the result of a process run by the BPU's Office of Clean Energy. The Garden State Energy proposal was chosen from among five submitted to New Jersey regulators for evaluation. GSOE will also receive a $4 million grant from the state of New Jersey, 10% of which will be received upfront to offset a portion of the costs of the studies. The remainder will be received upon commercial operations.

The foundations, turbines and towers are planned to be assembled on land and will be transported to the wind farm site via large-scale barges. Assuming a suitable site can be found, turbine assembly and port facilities are expected to be located in New Jersey and create local green jobs.

"PSEG believes that to meet the challenges of climate change, we need to move forward in three areas--expanding energy efficiency and conservation, investing in renewables and planning for additional clean central station power," said Ralph Izzo, chairman, CEO and president of PSEG. "We believe that offshore energy has great potential to bring clean energy and jobs to New Jersey."

"Deepwater Wind is excited to partner with PSEG and the State of New Jersey. This project is an important part of our strategy for the Northeast United States," said Deepwater Wind CEO Chris Brown.

About PSEG Renewable Generation

PSEG Renewable Generation is a subsidiary of PSEG Global and is part of the PSEG family of companies headquartered in Newark, NJ. PSEG is a diversified energy company (NYSE: PEG) and parent of PSE&G.

About Deepwater Wind

Deepwater Wind was established to develop utility-scale offshore wind projects in the northeastern part of the United States. The company's major investors are D.E. Shaw & Co., a global investment and technology firm with deep experience in the energy sector and First Wind, a major developer of onshore wind projects in the United States.