New Report Show PSE&G Gets Subsidy While Paying No Taxes on $1.8B

According to an ITEP tax report, PSE&G made almost $1.8 billion in profits in 2018 on $9.7 billion in revenues. The company paid zero in federal taxes. That translates to a return of 18 percent. This comes from the same company that recently threatened to close their nuclear power plants if they didn’t get subsidies from BPU.

“PSE&G just got $300 million from ratepayers while according to a new report, they paid no taxes on $1.8 billion in profits. This is more than shameful since they made over 18% profit in one year without paying any taxes. This nuclear subsidy is just a regressive tax on working families and a huge subsidy for a company that doesn’t need it. This is just downright shameful. This Families are struggling to pay taxes and their electric bills keep going up. PSEG keeps raising rates on them so they can boost their profits even higher and they don’t pay any taxes at all,” said Jeff Tittel, director of the New Jersey Sierra Club. “Thanks to the Governor and Legislature, PSE&G can be making over 20% in profits and over $2 billion and still pay no taxes. This is just the height of audacity. They deserve the Golden Chutzpah Award for this.”

The BPU recently approved $300 million in annual subsidies for PSEG’s three nuclear plants in Salem and Hope Creek. They said PSEG didn’t not show a financial need, but that they were worried the closing of the plants would hamper the state’s green energy goal.

“This is all about greed and not need. PSE&G have been bulling their way into getting what they want even if they don’t need it. The subsidy will be used to go out as PSE&G dividends and its stockholders instead of going towards renewable energy. This is the largest subsidy in state history that 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,” said Tittel. “PSEG said they weren’t making enough money from their nuclear plants. That is why they didn’t show their books to the public so they can get their subsidy. Now we understand why the BPU staff did not recommend the subsidy but the BPU Commissioners approved it anyway.

PSEG also received a windfall of up to $850 million from President Trump’s tax cuts. That didn’t stop the company from bemoaning their financial plight when they threatened to take the nuclear plants off line without more help from ratepayers.

“New Jersey alone has given PSE&G a laundry list of subsidies “PSEG has been bulling its way into getting what they want, and their profits just keep piling up. Those plants were not going to close anytime soon. They are too valuable an asset. The company just keeps squeezing ratepayers for more money and hurting the environment in the process,” said Jeff Tittel, director of the New Jersey Sierra Club. “We should just call them Public Service Enterprise Greed. All they want to do is increase their profit at your expense and still pay no taxes.”