STOCKTON, N.J., March 13, 2017 /PRNewswire/ -- ReThink Energy NJ released the following statement in response to Enbridge Inc. (Spectra Energy Corp.) today confirming that it has entered into an agreement to purchase PSEG's 10% share in the PennEast pipeline:
"Enbridge/Spectra's move to acquire PSEG's share in PennEast will enable it to further increase its exorbitant profits by building an unneeded pipeline on the backs of consumers," said Tom Gilbert, campaign director, ReThink Energy NJ and New Jersey Conservation Foundation.
"If there were a real need for PennEast, we would expect companies not already involved in this self-serving, profit-making scheme to be knocking down the door to purchase PSEG's share. Instead, Enbridge/Spectra will buy it, reinforcing the self-dealing nature of the project and the fact that there is no evidence of public need for it," Gilbert added.
"PSEG's sale of its stake in the PennEast pipeline is a reflection of the intense and growing opposition in New Jersey," Gilbert continued. "This opposition will intensify in the coming months, leading to further delays and defeat of this dangerous, unneeded pipeline."
Enbridge/Spectra will now own 20% of the project, while their affiliate will take 15% of the capacity. The project is now owned by five companies, and their affiliates have created the illusion of demand by contracting for 88% of their own pipeline.
The New Jersey Division of Rate Counsel has criticized PennEast's self-dealing ownership structure, calling PennEast unfair to ratepayers. Energy experts also call PennEast a new form of market abuse that could lead to more unneeded, inefficient pipelines.
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SOURCE ReThink Energy NJ