N.J. approves $956 million for projects

NEWARK, N.J. - State regulators yesterday approved spending nearly $1 billion on energy-infrastructure projects that will create more than 1,000 jobs.

The projects include replacing aging underground cables and electrical transformers and installing more energy-efficient streetlights at a total cost of $956 million, a bill to be paid by five utilities and, ultimately, their customers. Officials estimate customers' bills will increase 75 cents to $1 a month to pay for the projects.

In October, Gov. Corzine asked state utilities to accelerate capital spending to create jobs and stimulate the economy. The state Board of Public Utilities, which approved the projects by a 4-1 vote yesterday, estimates the projects will result in the hiring of 1,302 employees and contractors.

Among them is David Mager, 34, of Morris County. He has been out of work since the week before Christmas, when his employer for the last six years shut down. His wife also is unemployed. They have a 16-month-old son.

Mager starts work as a utility mechanic apprentice at Public Service Electric & Gas on April 30. He will make from $30,000 to $60,000 a year and said he was happy to have landed a secure job at a company that has not laid anyone off since the 1970s.

"If this hadn't come through, I don't know what we were going to do," he said.

Regulatory approval comes at a time when New Jersey's unemployment rate has reached 8.3 percent. The state lost jobs in March for the 14th straight month.

"This is a jobs project first and foremost," board president Jeanne Fox said. "These projects will provide critical support for our economy in these fragile economic times."

Among the five utilities, New Jersey's largest, PSE&G, will spend the most money. PSE&G received approval to spend $694 million on electric and gas distribution-system capital projects. The PSE&G improvements are expected to produce 933 direct hires.

"We're ready to get to work," said Ralph LaRossa, president of PSE&G. "Accelerating capital investments will help improve the state's economy by stimulating the purchase of goods and services and creating new jobs."

The other utilities receiving spending approval were Elizabethtown Gas, which plans to spend $60 million and create 65 direct hires; Atlantic City Electric, which plans to spend $28 million and create 92 new hires; South Jersey Gas, which plans to spend $103 million and create 127 new hires; and New Jersey Natural Gas, which plans to spend $71 million and create 85 new hires. The board is still considering proposals from Rockland Electric and Jersey Central Power & Light.

All the projects were on the drawing board at the time of Corzine's request or had been delayed.

The board estimates the projects also will generate more than 12,000 indirect jobs.

Commissioner Elizabeth Randall, who cast the dissenting vote, said she felt the estimates were too high.

Randall noted that the Elizabethtown Gas project created 65 direct hires but was credited with fostering direct and indirect employment of 650 jobs. Randall said that with all the stimulus money starting to flow from the federal government, it might be best for New Jersey to wait for that money to filter down.

Fox countered that by spending money on infrastructure now when prices for building materials are low due to the recession, utilities can get more done for the same money.