Public Service Goes Big Solar

Public Service Enterprise Group Inc. (PEG - Analyst Report) through its subsidiary PSEG Solar Source will develop three large-scale solar power projects with a cumulative total capacity of approximately 29.2MW. The three solar projects entailing an investment of approximately $100 million from Public Service will be located in Florida, Ohio and New Jersey.

The three projects will utilize 380,000 solar thin-film panels sourced from First Solar Inc. (FSLR - Analyst Report). The company expects the projects to be operational by the end of fiscal 2010.

The projects will be developed in close collaboration with Juwi solar Inc. Based in Boulder, CO – Juwi solar is a privately-held solar energy generation company which will provide the engineering, procurement, construction and initial operation and maintenance services for the projects. However, ownership of the projects will lie with PSEG Solar Source.

Public Service in recent times is focusing on the solar space in a big way. The company is also developing a 350MW wind farm off the coast of New Jersey. Apart from that, its regulated gas and electric utility subsidiary in New Jersey -- PSE&G -- has launched two solar initiatives, a $105 million solar loan program and an 80 MW program that involves attaching solar panels to 200,000 utility poles.

Public Service Enterprise Group's operations are mostly located in the Northeastern and Mid-Atlantic parts of the U.S. The company principally operates through three key subsidiaries: Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (PSEG Power) and PSEG Energy Holdings LLC (PSEG Energy). We maintain our market Neutral recommendation on the shares.