| The Great Falls Generating Station is located on
the Passaic River near the City of Paterson, New Jersey. The site
was originally utilized for the production of electrical energy
and was decommissioned in January 1969. The powerhouse was declared
a National Historic Landmark in 1971. In 1986, the facility underwent
a major rehabilitation with the installation of three new turbine-generators
and new electrical and control equipment and was recommissioned
in December 1986.
A power purchase agreement dated September 6, 1985 was entered
into between the Great Falls Hydroelectric Company and Public Service
Electric and Gas Company (‘‘PSE&G’’).
The agreement was amended on February 9, 1998. Under the amended
terms, PSE&G continues to purchase all electrical energy from
the facility. The rates paid for such energy and capacity are based
on the local marginal energy pricing paid by PSE&G for energy
and capacity.
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