Ratepayer Nuclear Bailout (S877) to PSE&G Unwarranted

Undermines New Jersey’s Renewable Energy Goals

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, D-Gloucester). Click here for online version of press release.

Despite being profitable enough to have bid into auction, PSEG could start receiving subsidies within a year of passage of S.877. The bill will essentially guarantee PSE&G $300,000 per year (at least $3 billion) through 2030 with an option to extend with virtually no strings attached and no independent determination of need. While several committee hearings were held and many hours of testimony given, secret talks and back room deals were the voices heard and seriously listened to.

“Despite many rewrites, S877 is still 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.

“The original bill gave the shaft to ratepayers, and so does this one,” said 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.”

“In February, while Assembly Speaker Coughlin (D-Middlesex) announced  hopes to re-instate the laudable “Heat and Eat” anti-poverty measure that provides utility bill assistance to NJ’s low income families who struggle to make ends meet,” added Ms. Goldsmith, “Senator Sweeney was pushing a nuclear bailout for the undeserving.” If S877 becomes law, all New Jersey residents, businesses, industries and institutions would pay a nuclear bailout charge regardless of their ability to pay and name of their electricity provider.

Low income residential ratepayers are not the only ones concerned about their utility bill. Some of the State’s largest employers, would be especially hard hit by S877. Their portion of the bailout could be in excess of $500,000 annually, with some paying more than $1 million each year.

“We should consider how many jobs are lost when businesses are forced to pay these higher electric rates or leave the state. Passage of S.877 could turn into a state-wide job buster and offer no protection for nuclear workers from job loss when the plants eventually close.”

“If we want to truly help families of utility workers, then PSE&G should establish a just transition plan and fund for their workforce to do a proper and full decommissioning (15-20 years to complete), provide early retirement for others or prepare them for new employment.”

“Let’s be honest, stated Ms. Goldsmith, “PSE&G claims it is in financial trouble, when it has not proven that it is. It claims nuclear power is “renewable” when it isn’t.  Ultimately, this bill provides 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 more jobs and keep us moving forward. We shouldn’t be shoring up a Frankenstein and those that profit from it.”

The bailout 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 (43%) of the two Salem Nuclear Units.

Exelon announced (2/2/18) 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 and PSE&G have 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 or bailed out. 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