Newark-based Public Service Enterprise Group (PSEG) – the parent company of New Jersey’s main utility, Public Service Electric and Gas (PSE&G) – announced during a quarterly earnings call on July 29 that it will move forward with building a competitive retail supply business as a “defensive” play, Energy Choice Matters reports.
The company said that it has been evaluating a retail play for about 12 months. Overall, PSEG CEO Ralph Izzo said he expects that the retail initiative will be “modest” and “organically grown.”
“We’ve hired some folks and we’ve started looking around at the kind of systems that we would need that are a little different from the systems we have now.” Izzo explained, adding, “We’re preparing to file the necessary documents that one needs to be certified or licensed to engage in this [retail] business; it would be a separate and different function than our current wholesale trading arm.”
He noted, “We remain interested in retail for defensive purposes, managing basis risk, and not as a significant growth opportunity by any stretch of the imagination.”