Clean Water Action Statement:

Ratepayer Nuclear Bailout to PSE&G Unwarranted – Senate Bill 877 Sends Us Backwards Not Forwards

Trenton, NJ — Today, Clean Water Action joined a broad coalition of business, community, and environmental groups at a Statehouse press conference to speak out about the nuclear subsidy bill, S877 (Sweeney). Under this bill, PSEG could start receiving subsidies within a year, despite being profitable enough to have bid into auction. It also includes subsidies to fix up their plants. The bill goes minimally through 2030 but can be extended. The bill has been worked on behind-the-scenes with little opportunity for public examination and input. We believe that the bill undermines renewable energy and hurts the communities and ratepayers of New Jersey. The bill is moving through the Legislature and is currently in Committee.

“Senate Bill 877 is designed to prop up PSE&G profits for its stockholders with ratepayers bailing out the nuclear industry and putting a roadblock in front of Governor Murphy’s plan to achieve a 21st Century renewable energy future for New Jersey – 100% renewables by 2050,”said Amy Goldsmith, Clean Water Action State Director. “New Jersey’s energy future should be developed in a fully transparent public arena, which S877 was not. It must be drafted in tandem with the governor’s goals and not at odds with it.”

The highly controversial bill, S877, was sponsored by Senator Stephen Sweeney (S-Gloucester) and Senator Robert Smith (D-Middlesex). It essentially mirrors a former bill that would give up to $30 million in subsidies to PSE&G that was not approved in lame duck session.

“The original bill gave the shaft to ratepayers, and so does this one,” added Goldsmith. “The shame of it is that it locks us into a dirty energy path. New Jersey’s economic future would be best served by bolstering the renewable industry and corresponding jobs.”

“We should be manufacturing wind turbines and solar panels right here in New Jersey and making this state a renewable energy leader. When we first talked about offshore wind, the plan was to manufacture the blades in Paulsboro, bringing much-needed jobs to that area. But, we got horribly off-track under the Christie Administration and this bill does nothing to correct past mistakes. In fact, the ramifications are far worse.”

Goldsmith added that the basic premise of the bill is flawed because it defines nuclear energy as clean energy and puts the industry in the renewables category.

“Just because you cannot see, taste, or smell nuclear emissions does not make the energy source clean or renewable,” said Goldsmith.

“Energy derived from any fuel source is not renewable,” said Goldsmith. “This bill directs a subsidy to an old, dying industry for the sake of stockholder return rather than giving birth to a sustainable, more resilient energy future for New Jersey that will create jobs and keep us moving forward. We shouldn’t be shoring up a Frankenstein and those that profit from it.”

The package includes financing for the Exelon Corporation as well. While PSE&G is the sole owner of the Hope Creek Nuclear Plant, it shares ownership with Exelon of the two Salem Nuclear Units.

Exelon announced Friday that it would close the Oyster Creek Nuclear Generating Station in Lacey Township, the country’s oldest nuclear plant with a flawed design, the same as that at Fukushima.

“Exelon has known for years that nukes are a dying industry, and we shouldn’t be drying their tears with ratepayer money,” said Janet Tauro, Clean Water Action NJ Board Chair. “Any company with a history of radioactive tritium leaks, fish kills, and radioactive releases into the environment does not deserve to be rewarded. Quite the contrary, they should give money back to ratepayers, fined, and forced to clean up their radioactive mess.”

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Since our founding during the campaign to pass the landmark Clean Water Act in 1972, Clean Water Action has worked to win strong health and environmental protections by bringing issue expertise, solution-oriented thinking and people power to the table. We will protect clean water in the face of attacks from a polluter friendly Administration and Congress. Clean Water Action has 150,000 members in NJ and nearly 1 million nationwide.  www.cleanwater.org/nj