PSEG Energy Resources & Trade LLC
Extracting Value From Assets
Among the nation's first and most successful energy trading organizations, PSEG Energy Resources & Trade operates a leading wholesale energy business in the Eastern United States. As the trading arm of PSEG Power, PSEG Energy Resources & Trade markets the output of PSEG Power's generation assets, acquires and hedges fuel and power, economically dispatches plants and trades numerous energy-related products. PSEG Energy Resources & Trade operates from a cutting-edge trading floor at our corporate headquarters in Newark, NJ.
PSEG Energy Resources & Trade trades throughout the greater Northeast United States. We focus primarily on those areas in which our generating assets are located: PJM, the nation's largest and most developed energy market, as well as New York and New England.
Our successful track record stems from our integrated trading/generation model, balanced asset base, varied product mix and exceptional trading team. Equipped with leading-edge technology, our trading operation uses a progressive approach to achieve consistent results.
PSEG Energy Resources & Trade (ER&T) is among the few trading operations with an integrated trading/generation model. Our generating assets comprise one of the largest portfolios in the Pennsylvania, New Jersey, and Maryland (PJM) market -- one of the largest competitive electricity markets in the world -- and extend into the adjoining New England and New York markets. The mix of base-load, load following and peaking plants provides ER&T a competitive edge in serving load contracts and other hedging strategies.
Our model facilitates close communications with the operating units and electric system, enabling ER&T to respond quickly to this very dynamic marketplace. The trading floor markets the generating plants, treating each plant as part of a broader portfolio from a trading and marketing perspective, rather than each plant operating as a separate unit with its own P&L. This integrated trading/generation model maximizes the value of the portfolio.
PSEG Power possesses sizable generation assets which are exceptionally diverse, with a balance of fuel sources (nuclear, gas, coal and oil), technologies (steam and combustion turbines, combined cycle and pumped storage) and markets segment (peak, load-following and base load units). This gives PSEG Energy Resources & Trade the flexibility to adjust to rapidly changing market conditions...to move with the market and, ideally, to stay one step ahead of it.
PSEG Energy Resources & Trade employees understand PJM and the other power pools -- some even helped design the pool rules. They also know how PSEG Power's various units perform in the marketplace. PSEG Energy Resources & Trade's unsurpassed knowledge of market rules, fuel characteristics, generation, transmission, distribution, and market parameters (such as emissions credit requirements) are the foundation of our success in PJM and our other markets.
PSEG ERT's trading operation is built around the company's generation assets -- and the base of knowledge and experience that comes from operating those assets. PSEG Energy Resources & Trade trades around the assets of PSEG Power in order to limit risk and extract maximum value from those assets. These assets include 9,561 MW in PJM, 815 MW in New York and 978 MW in Connecticut. PSEG Power's electric generating stations have a combined capacity of over 11,353 megawatts -- enough power to light about seven million homes.
The Bethlehem Energy Center near Albany, New York, is a 815 MW state-of-the-art, combined-cycle plant fueled primarily by natural gas. Located on the Delaware River in southern New Jersey, the Salem and Hope Creek Nuclear Generating Stations have a capacity of 3,451 MW (100%) / 2,481 MW (PSEG share) of energy.
PSEG Energy Resources & Trade also trades a range of products, including electricity, generating capacity, natural gas, emission credits, transmission rights, coal and oil. These products all relate to energy, but each has its own particular dynamic. This diversity allows PSEG Energy Resources & Trade to seize a greater range of opportunities across a whole spectrum of products. ERT typically focuses on short and medium term trades, usually three years or less.
From our beginning in 1996, PSEG Energy Resources & Trade has been distinguished by our trading team which combines both commodity traders and traders with expertise in electricity transmission and generation. Unlike many other commodities, electricity can't be stored and the rules governing the movement of electricity are complex, thus operating experience is critical to success in the marketplace.