FMANJ STATEMENT ON NJBPU (LACK OF) RATEPAYER IMPACT STUDY

Eric DeGesero, Executive Vice President of the Fuel Merchants Association of New Jersey, released the following statement today:

“Today the NJBPU released the (Lack of) Ratepayer Impact Study on the EMP. It is laughable.

Governor Murphy talks the talk and walks the walk on aspects of the EMP that he likes – solar, wind, wind manufacturing, nuclear subsidies and EVs. Of course, the cost of all of these programs is buried in our utility rates. The one aspect of the EMP the Governor has never discussed in over six years is building electrification. Why? Is it because it is outrageously expensive, he has never requested nor been granted authority by the legislature to mandate all buildings be electrified, or a combination of both?

“In our homes, ripping out our fossil fueled system and installing all electric heat pumps and electric resistance back-up when the electric heat pump doesn’t work will cost homeowners tens of thousands of dollars. The BPU has contracted the Northeast Energy Efficiency Partnership to effectuate this and they are in the process of doing so.

“As for apartments, tenants and their landlords, schools and other public buildings, and commercial buildings, the electrification mandate is almost here.

“A pending NJDEP regulation mandates that all buildings with boilers over 1 Million BTUS that need to be replaced after January 1, 2025 must install electric boilers. To the NJDEP’s credit, they stated it would cost four to five time more to heat the building with electricity than natural gas. What they didn’t state is that it will cost the building owner and its tenants $2 million to convert a building with a 1.5 MMBTU boiler to accept the amount of electricity needed to heat that building. Buildings with larger boilers will pay more. The NJDEP regulation will be adopted by December 6, 2022. Attached is a list of the impacted facilities by town and industry.

With less than four months before this expensive regulation takes effect, it is time for the Legislature to engage in this aspect of the EMP by passing S2671 (Gopal) and A3935 (Moriarty).”

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