BPU Holds Nuclear Subsidy Public Hearing in AC

The Board of Public Utilities will be soliciting comments from stakeholders at their second of three public hearings at Stockton University on the Nuclear Subsidy Law.  The main focus specifically the ZEC application, application process and the ranking of approved applications. The Nuclear Subsidy Law requires the NJ BPU to create a program and mechanism for the issuance of Zero Emission Certificates (“ZECs”). This law is the biggest subsidy in state history, $300 million a year for PSEG’s nuclear plants. The law also requires consumers to buy 40% of electricity from nuclear power plants.  Jeff Tittel, Director of the New Jersey Sierra Club, released the following statement:

“The BPU is moving forward with a program that is a rip off to the ratepayers and hurts the environment and consumers. The application process is not transparent or open. BPU haven’t even done an analysis on whether or not these nuclear plants need a subsidy or not. We have to open this process up so that it is not a sham. We should not be giving out a penny from the subsidy until an independent analysis is done. BPU must bring in an outside auditor and financial analyst to see if these nuclear facilities even need the money. They need to require opening the books to the public. These nuclear plants do not need a subsidy, they are already profitable. PSEG has said in the past that they would make an 18% profit. This is all about greed.

“This nuclear subsidy law will not only cost ratepayers $300 million a year but will undermine Governor Murphy’s 100% renewable goals. What’s even worse is that this law will allow out of state plants be subsidized even if plants in New Jersey close. Instead of spending money on our wind program, the Murphy Administration is wasting hundreds of millions of dollars on this nuclear subsidy.

“New Jersey ratepayers will be paying for in and out of state nuclear plants with this nuclear law. The law requires ratepayers to buy 40% of their electricity from nuclear but with Oyster Creek Closing, nuclear generation in New Jersey will drop to 31%. This means that New Jersey ratepayers will buy 9% of their nuclear power from out of state. This gives out of state nuclear plants like PSEG’s and Exelon’s Peach Bottom Plant and Exelon’s Three Mile Island and Limerick plant an opportunity to qualify for zero emission credits.

“Our concern is that any one of these companies that own plants within the PJM region will be able to qualify and rip off ratepayers even if they need a subsidy or not. We will never be able to diversify our energy portfolio if we have to subsidize nuclear energy forever, or even worse, subsidize out of state nuclear forever. The nuclear subsidy will cost New Jersey ratepayers $3 billion over 10 years but since it is open ended, nuclear plants could get that subsidy for the next 30 years.

“When New Jersey moves forward with renewable energy or builds more natural gas plants like the one in the Meadowlands, we will have to buy more nuclear power to compensate that 40% requirement.  We are concerned because nuclear plants will try to operate beyond their current license and as they become older, they become more at risk for accidents or breakdowns. If these plants finally close they don’t have to be replaced to renewable energy, they could be replaced by fossil fuel or coal. There has to be a closure plan for the nuclear plants. They should not be allowed to stay open past their lifetime. These nuclear plants should be replaced by renewable energy instead.

“Governor Murphy committed to 100% renewable and this nuclear subsidy bill will block that from happening. If we add more renewable, we will have to buy more nuclear. This will prevent Governor Murphy’s goal to transition to a clean, renewable energy future. Murphy is moving forward with the Energy Master Plan renewable goals by 2050 but unless he will change these laws, we will never get there. The only people benefiting from the nuclear subsidy law is Exelon and PSEG.”