Public Service Enterprise Group – the holding company for Public Service Electric and Gas (PSE&G), New Jersey’s largest investor-owned utility –is getting into the retail energy business, according to a report by NJ Spotlight on September 27.
The Newark-based company is discreetly setting up an unregulated unit called PSEG Energy Solutions, the local news outlet said, in order to sell electricity and gas to commercial and industrial customers. The company will not market to residential customers, unlike other retail businesses set up by competitors.
Initially, the new retailer will concentrate its efforts on providing a hedge to its PSEG Power, which owns more than 18,000 megawatts (MW) of generating capacity. With power prices slumping, the new undertaking can assure that all of its generation assets are maximized.
“Our intention is to help hedge the power portfolio,’’ Tom Chamberlin, the newly hired managing director of PSEG Solutions, told NJ Spotlight.