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New Jersey passes cogeneration tax exemptions, Jersey Central Power and Light develops state's first long-term buyback offer

Journal Article · · Cogener. Small Power Mon.; (United States)
OSTI ID:6312548

Under the impetus of the New Jersey Department of Energy, New Jersey is moving to create an environment in which cogeneration development is possible. Specifics include: (1) passage of legislation exempting sale(s) of machinery, apparatus, equipment, building materials, or structures or portions thereof, used directly and primarily for cogeneration in a cogeneration facility for the State's 6% sales and use tax; (2) passage of legislation exempting from gross receipts taxes payments from a cogenerator in payment for natural gas sold by the (gas utility) to the cogenerator and separately metered for use in a cogeneration facility; (3) announcement of a policy favoring wheeling of electricity for QFs within the state of New Jersey, primarily to facilitate the movement of electricity to the service territory of Jersey Central Power and Light Co (JCP and L); (4) issuance of a term sheet by JCP and L for contracts for the purchase of long-term energy and capacity from cogeneration and resource-recovery facilities. Under the JCP and L offer, cogenerators must contract for the delivery of firm capacity for at least twenty years. During that time, JCP and L will pay 65 mills/kWh delivered (1985 dollars) with appropriate variations of that amount designed to encourage production during peaks.

OSTI ID:
6312548
Journal Information:
Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
Country of Publication:
United States
Language:
English