NEWARK, N.J., Nov. 20 /PRNewswire/ -- PSEG Power Connecticut has reached agreement with the City of New Haven and the environmental community on a plan to ensure there is no net increase in emissions when 130 megawatts of new peaking generation are added to its existing New Haven Harbor Station.

Attaining the "no net emissions increase" result was the focus of an agreement the company signed Thursday with the City, New Haven Environmental Justice Network, Connecticut Coalition for Environmental Justice and Connecticut Fund for the Environment. The agreement spells out enforceable changes in operating protocols for the plant's existing unit designed to ensure that the three new peaking generation units will not increase overall air emissions when they become operational in 2012. PSEG Power Connecticut also committed to provide $500,000 to fund environmental projects in New Haven's East Shore neighborhood.

"This agreement is in line with PSEG's commitment to support environmental responsibility while we continue to invest in Connecticut's energy infrastructure," said PSEG Power Connecticut President Richard Lopriore. "The agreement reflects our commitment to being good neighbors in the communities in which we do business. We thank New Haven Mayor John DeStefano, the City Administration and the environmental organizations involved for the good faith and diligence with which they participated in the discussions that led to the agreement."

The consensus reached with the City and environmental community also marks a successful outcome for the first major test of Connecticut's new environmental justice law, which took effect in 2009 and requires power plant project developers in urban areas to conduct significant community outreach before obtaining permits from the Department of Environmental Protection.

PSEG agreed to a series of conditions that it will seek to add to the operating permit for the existing New Haven Harbor Unit 1 and to the operating permit for the new peaking generating units. As a result of the agreement, the City will support Connecticut Siting Council and DEP approvals for the project. The environmental groups agreed not to oppose the project, the permit renewal for the existing NHHS Unit 1, or the permits to construct and operate the peaking units.

The operating protocols include reducing Unit 1's maximum output while any of the peaking units are in service, and its minimum operating time. In addition, from May 1 to September 30 and on "Unhealthy Air Days" as designated by DEP, the unit will be "co-fired" with natural gas to the extent possible. Unit 1 also will be co-fired with natural gas for at least one hour for each hour one of the peaking units operates.

The three peaking units are slated to go into service in June 2012. The $135 million construction project is scheduled to begin in 2011. The new units will use highly efficient turbines -- the cleanest technology available -- to provide power during periods of peak demand. They will use natural gas as a primary fuel and be equipped with state-of-the art emissions controls to reduce nitrogen oxide and carbon monoxide emissions.

The Connecticut Legislature in 2007 mandated development of additional new peaking generation to support electric system reliability. PSEG's New Haven project was among three chosen by the Department of Public Utility Control through a competitive bidding process.

PSEG Power Connecticut is an indirect subsidiary of Public Service Enterprise Group (NYSE: PEG), a publicly traded diversified energy company with three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings.

SOURCE PSEG Power Connecticut

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