GPU and New Jersey Resources sign gas pooling agreement; innovative partnership to save millions in energy costs.PARSIPPANY, N.J.--(BUSINESS WIRE)--Aug. 31, 1995--General Public Utilities Corporation and New Jersey Resources Corporation today announced the formation of a pooling plan for managing the natural gas supply and capacity portfolios for up to 25 gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- generating stations that supply the GPU GPU: see secret police. (Graphics Processing Unit) A specialized logic chip devoted to rendering 2D or 3D images. Display adapters contain one or more GPUs for fast graphics rendering. system in New Jersey and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . The plan could save customers of the GPU System companies several hundred million dollars in energy costs over a 10-year period. It would also more than double the volumes of natural gas under management by NJR NJR National Joint Registry (UK) NJR New Japan Radio Corp (Japan) NJR New Jersey Resources, Inc. (stock symbol) NJR Nonjob-Routed . Under the agreement, NJR will provide gas procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and other fuel management services in conjunction with GPU system power dispatchers to ensure the most reliable and economical operation of gas-fired generation supplying the GPU system. The natural gas pooling plan will supply potentially 1,100 megawatts of non-utility generation (NUG NUG abbr. necrotizing ulcerative gingivitis ) currently under contract with the GPU companies, as well as the companies' own gas-fired facilities in New Jersey and Pennsylvania. At a news conference today, GPU Service Corporation, on behalf of Jersey Central Power & Light, Metropolitan Edison Edison, township (1990 pop. 88,680), Middlesex co., NE N.J., inc. 1870 as Raritan Township, renamed 1954. Edison's varied manufactures include light trucks, chemicals, metal products, electrical and electronic equipment, machinery, and instruments. and Pennsylvania Electric entered into a three-year fuel management agreement with New Jersey Natural Energy Company, an NJR subsidiary, to manage the GPU System's gas purchases and interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. pipeline capacity. Under the agreement, New Jersey Natural Energy will manage up to 300 million cubic feet of gas a day to both GPU-owned generation facilities and the NUG's on an as-needed basis, operate the pool and market any excess gas supplies or capacity when they are not required to generate electricity. "If all the NUG's currently under contract to us that burn natural gas participate in the gas pooling program, the eventual savings could be several hundred million dollars over 10 years," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. C. Arnold, executive vice president-power supply for GPU Service Corporation. "We recognize the value of applying New Jersey Resources' expertise to manage and market the gas that will flow through the pool," said Arnold. Laurence M. Downes, NJR president and chief executive officer, said, "This partnership between GPU and NJR is a prime example of electric and gas interests working together to maximize their respective strengths. Today's competitive energy markets call for creativity and imaginative thinking to take advantage of new opportunities." New Jersey Resources has been an industry leader in pursuing innovative gas supply and capacity transactions, made possible by deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of interstate gas markets in recent years. The company has doubled its gas sales in the last four years and now sells gas in wholesale markets in 10 states outside New Jersey. For fiscal 1995, the company expects to sell more gas outside of its New Jersey franchise than inside; NJR's utility subsidiary is the state's second largest retail supplier of natural gas. GPU is seeking to revise operating agreements An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. with non-utility generators to make their production more competitive with current wholesale electricity prices. The fuel management agreement is also expected to lower the fuel costs for GPU's own gas-fired plants, thus improving their overall contribution to GPU's generation mix. GPU, an electric utility holding company, is among the 20 largest electric utility systems in the nation. Its three operating utility subsidiaries, Jersey Central Power & Light, Metropolitan Edison and Pennsylvania Electric, serve some 1.9 million customers in about half the land area of New Jersey and Pennsylvania. Other GPU subsidiaries are GPU Service Corporation, GPU Nuclear Corporation and Energy Initiatives Inc. New Jersey Resources Corporation is an investor-owned energy holding company engaged primarily in natural gas distribution and related businesses. Its principal subsidiary is New Jersey Natural Gas Company, a gas utility serving about 350,000 retail customers in coastal and northern New Jersey, and wholesale customers in 10 other states. CONTACT: GPU John T. Fidler, 201/263-6479 or NJR Catherine M. Downey, 908/938-7866 |
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