Public Service Enterprise Group Inc.’s (PEG - Free Report) Queen Creek Solar Farm project has started its commercial operations. The solar plant with a power generation capacity of 25.2 megawatt DC or 19 megawatt AC has been owned by PSEG Solar Source, a subsidiary of Public Service Enterprise Group.
The solar power plant is located approximately 30 miles southeast of Phoenix spread on 148 acres of land. It has 90,000 crystalline panels operating on a single axis tracking system.
In January 2012, PSEG Solar Source had completed the acquisition of the project developed by juwi solar Inc. (“JSI”). juwi solar has also served as the EPC contractor and will continue to provide operation and maintenance services to the project. Under a 20-year agreement, all the electricity generated from the project will be sold to Salt River Project (SRP). Moreover, it has begun taking power from the plant.
The project will generate energy that will serve about 3,300 homes. Moreover, being eco friendly, the power generated from the project will be able to offset approximately 21,000 metric tons of carbon dioxide emissions each year, which is equal to taking approximately 4,100 cars off the road.
Public Service Enterprise continues to invest in projects that provide clean, emissions-free solar energy in order to meet solar and renewable targets and also have supportive local and state policies.
Four other projects in collaboration with JSI that fall in line with the company’s goals include: a 12.0 MW DC Wyandot Solar Farm in Wyandot, Ohio, a 15.0 MW DC Jacksonville Solar Farm spread over an area of 100 acres in Jacksonville, Florida and a 2.2 MW DC Mars Solar Garden facility located adjacent to the Mars Snackfood's US headquarters in New Jersey and the recently acquired 15 MW DC PSEG Milford Solar Farm in Milford, Delaware, which is under construction.
Public Service Enterprise Group has a solid portfolio of regulated and non-regulated utility assets that offer a stable earnings base and substantial long-term growth potential. The company strives to optimize generation margins by improving its cost-structure and through improvements in performance and reliability of its nuclear and fossil units. Management has taken several measures to improve financial stability and reduce the overall risk profile of Public Service. This includes opportunistically monetizing assets that no longer are a strategic fit, reducing international exposure, significantly hedging future generation business and paying down debt.
Public Service has been pursuing growth opportunities in the core U.S. market and increasing capital allocation in projects that provide good risk-adjusted returns. However, the increasing cost of coal, higher pension & financial costs and power-price volatility are areas of concern. The company presently retains a short-term Zacks #2 Rank (Buy). We have a long-term Neutral recommendation on the stock.
Based in Newark, New Jersey, Public Service Enterprise Group Incorporated is a diversified utility holding company. The company’s operations are mostly located in the Northeastern and Mid-Atlantic parts of the U.S. Public Service Enterprise 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). PSEG Energy Holdings has two main unregulated energy-related businesses: PSEG Global and PSEG Resources. PSEG Solar Source LLC is a wholly owned subsidiary of PSEG Global. It was formed to develop, construct, own and operate large-scale solar facilities outside the PSE&G's regulated service area.
Some of its main competitors are Xcel Energy Inc. (XEL - Free Report) and Entergy Corporation (ETR - Free Report) .