Hoboken Council Approves $175M PSEG Power Project

HOBOKEN, NJ — The Hoboken City Council approved a resolution last week that will clear the way for a $175 million PSE&G project that will redevelop the city’s power grid.

During their April 19 meeting, the council gave the go-ahead to a project that will combine the Marshall Street substation with the Madison Street substation in an effort to “elevate and modernize” the 50-year-old facilities, which are reportedly both at-risk to flooding.

• See related article: $175M PSEG Project Up For Vote In Hoboken

Project information can be seen at the below links:

• www.hobokennj.gov/docs/communitydev/Memo-Zimmer-Council-PSEG-4-13-17.pdf
• www.hobokennj.gov/docs/communitydev/PSE&G-Memo-to-Council-2-13-17.pdf

According to city officials, the project would include a land swap through which the municipality would transfer the lot adjacent to the existing Madison Street Substation to PSE&G in exchange for the utility transferring the Marshall Street Substation property to the city.

PSE&G would also make a payment of $1.245 million to the municipality to compensate for the difference in the appraised value of the properties, as well as an annual “loss of use” payment of $275,250 until PSE&G has completed the decommissioning and remediation of the Marshall Street Substation property, officials said.

Hoboken city officials said that PSE&G has already invested $130 million to upgrade and elevate the 16th Street substation.

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“All of our residents and our business community need reliable energy, and this project will make certain that we never again have to endure weeks without lights or heat like we did during Sandy,” Mayor Dawn Zimmer previously said about the project. “I have advocated strongly for an innovative design for the substation, and I want to thank PSE&G for continuing to work with the city to create a design that integrates with our urban landscape and replaces the unattractive substations surrounded by chain link fences and barbed wire. With the council's support, this vital project will start construction this summer and when completed, will ensure a resilient and reliable energy source for our entire city.”

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Photo: City of Hoboken, Marshall Street substation