Independent Experts Find PSEG & Exelon Do Not Need Subsidies

NEW BRUNSWICK (Feb. 12, 2021) – Today, AARP New Jersey delivered nearly 5,000 petitions from AARP members and other residents throughout New Jersey to the NJ Board of Public Utilities urging the Board end New Jersey’s nuclear tax (also called the zero emissions certificate or ZEC).

The Board is currently considering whether to extend the nearly $1 billion nuclear tax that was imposed on every residential and business electricity consumer to boost the profits of PSEG and Exelon, the owners of the Salem 1, Salem 2 and Hope Creek nuclear plants.

Every New Jersey electric customer and business pays the ZEC tax even though PSEG is a profitable corporation and the electricity generated by these plants serve customers beyond state lines (and who don’t have to pay the tax).

AARP New Jersey, in its comments filed with the BPU in the current proceeding, noted the New Jersey Division of Rate Counsel’s independent experts and the Independent Market Monitor (IMM) for the regional transmission organization, have found that PSEG and Exelon have failed to demonstrate the Salem and Hope Creek nuclear units will need to shut down over the next three years if subsidies are not awarded by the BPU. Moreover, the IMM has determined the Board should be crediting, or otherwise providing refunds, to New Jersey’s electric consumers for the overpayments they are making now.

“PSEG now wants New Jersey to order consumers to continue to pay this tax for yet another three years and another almost one billion dollars even in the face of the devastating health and economic toll of the COVID-19 pandemic,” said Evelyn Liebman, AARP New Jersey Director of Advocacy. “The pandemic has left hundreds of thousands of New Jersey families at risk of having their electricity shut off because they can no longer afford to pay their bills. Many New Jerseyans and small businesses are struggling just to get by and keep the lights on during the pandemic. Once was bad enough, twice is worse. Especially now, the last thing we need is another nuke tax taking more money from our pockets to give to profitable corporations who do not need it to keep the plants running.”

AARP New Jersey delivered the nearly 5,000 signatures from residents across the state along with written testimony urging the BPU to end the nuclear tax.

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About AARP New Jersey
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. AARP New Jersey educates and advocates on behalf of those 50 and older on issues that are important to them, their families and to all Garden State residents. The organization works to strengthen New Jersey communities with a focus on health security, financial stability and personal fulfilment. To learn more, visit www.aarp.org/nj or follow @AARPNJ on social media.