Nuclear Subsidies Hearing Thursday: Bad Deal for NJ

On Thursday, January 25^th, the Senate Environment and Energy Committee will consider S877 (Sweeney) which would Establishe the Nuclear Diversity Certificate program. This is identical to the bill that failed to get through during last session. The bill supports Chris Christie’s original negotiations to give PSEG subsidies for their nuclear plants in New Jersey. 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. New Jersey Sierra Club Director Jeff Tittel released the following statement:

“The Legislature is attempting to tie the hands of the next Administration with this bill before Governor Murphy has even unpacked his office. Phil Murphy has committed to a goal of 100% renewable energy by 2050. He believes that we must look at larger energy picture before moving forward with something like this and we strongly agree. This bill would subsidize nuclear power at the expense of renewables such as wind and solar. They’re having this hearing without any input from the New Administration. There’s no reason to shamefully rush this through and zero justification for any nuclear subsidies. It’s nothing more than giving PSEG a blank check from the ratepayer.

“We should not be moving forward with this nuclear subsidy deal when PSEG will get $800 million in subsidies from Trump’s tax cut. PJM is also looking to give them millions in subsidies. Under energy deregulation these plants also received $2.5 billion dollars in subsidies as Stranded Assets, despite being profitable. PSEG still want to take billions of NJ ratepayer money to subsidize nuclear their power plants that are already making money. We want to make sure we’re not subsidizing nuclear plants, but more importantly that when the plants close, they need to be replaced by renewable energy.

“PSEG’s nuclear plants aren’t in any jeopardy and don’t need any financial assistance for at least a couple years. All this is about is taking care of stockholders and bondholders. Two of the plants looking for subsidies, Salem 1 and 2, operate without cooling towers to mitigate for fish kills. Unlike bills in other states, this nuclear subsidy bill does not have any language that protects or promotes renewable energy. This means that when the plants close, they can be replaced with natural gas. This hearing is a shameful start to the new session. The Legislature has no need to push through this bill that will severely interfere with Governor Murphy’s clean energy goals.”

The Senate Environment and Energy Committee will be meeting to hear testimony on this bill at 10 am on Thursday, January 25, 2018 in Committee Room 4, 1st Floor, State House Annex, Trenton, NJ.