Utility PSEG expects restoration costs of up to $300 mln from Sandy

Tue Dec 4, 2012 8:29am EST

Dec 4 (Reuters) - Public Service Enterprise Group Inc , the biggest utility in New Jersey, whose infrastructure was severely damaged by superstorm Sandy, said it expects restoration costs of about $250 million to $300 million.

Towns along the New Jersey shore took much of the brunt of Sandy, which barreled through the U.S. Northeast in late October, flooding homes, washing away boardwalks and rupturing gas mains as well as crippling power supplies.

PSEG suffered the worst outage in its history, leaving 1.7 million of its customers without power, after the storm damaged transmission, distribution and generating systems and flooded a large number of substations along the Passaic, Raritan and Hudson rivers.

The estimated cost includes expenses and capital related to the restoration, and at least 85 percent of the costs are expected to be deferred or capitalized for future distribution or transmission recovery, PSEG said.

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