Sierra Club Speaks Out Against Nuclear Subsidy Bill

Trenton- At today’s press conference, the New Jersey Sierra Club and other groups are speaking out against the nuclear subsidy bill, (S2313). The groups have all signed on to a letter to Governor Murphy asking him to veto or conditionally veto the nuclear subsidy bill. The bill is on the Governor’s desk and if signed, would give PSEG a $3 billion subsidy that they don’t need. Jeff Tittel, Director of the New Jersey Sierra Club, released the following statement:

“This bill would end up being the biggest subsidy in state history wrapped in bad public policy. This is why Murphy should veto or conditionally veto the bill. The $3 billion subsidy for PSEG for their nuclear plant lacks oversight, scrutiny, or transparency. It would also block renewable energy such as wind and solar power and prevent us from reaching Murphy’s goal of 100% renewable energy by 2050. The utility has not been able to prove their need for the subsidy in the first place. This is a huge giveaway to PSEG without any oversight, scrutiny or transparency.

“In our letter to Governor Murphy, we’ve asked him to either veto the bill as its written, or CV it to include important changes. We believe that any subsidies PSEG gets from other sources, including the federal government, should offset the amount they receive from New Jersey ratepayers. They must be able to prove that they are financially in need of the subsidies and are not wasting ratepayer money. Any financial gain to the plants or increases in market prices generally due to the pricing of carbon that result from the State rejoining RGGI should also be credited against the ratepayer subsidies.

“We’re also asking for edits to make the bill more transparent and have more scrutiny. We believe it needs language to protect workers and prevent out-of-state facilities from receiving subsidies. We have believe that the subsidies must require an annual financial review, clawback provisions, a ten-year sunset provision, and clear participation by the NJ Division of Rate Council. We must also make sure that when these plants close, they are dedicated to being replaced with renewable energy.

“PSEG cannot be trusted. They’ve been lying and denying for so long that there’s no way we can trust them. Every time we make an accusation it turns out to be true. PSEG was fined $39 million by FERC for lying in their cost-bidding scheme for almost a decade. FERC almost never goes after utilities, so this shows how serious the situation is. PSEG even just finally admitted that these subsidies would help plants outside of the state, including Peach Bottom in Pennsylvania. If we can’t even trust PSEG to report millions to the rubberstamping agency that is FERC, how can we trust them in front of the BPU with $3 billion?

“The whole bill is just an excuse to subsidize the nuclear power plants. PSEG are getting $300 million a year whether they need it or not. 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. We have said from the beginning that PSEG does not need the money.

“This bill will severely interfere with Governor Murphy’s clean energy goals. There is zero justification for any nuclear subsidies. It’s nothing more than giving Public Service Enterprise Greed a blank check from the ratepayer that will undermine progress for renewable energy in New Jersey. This bill hurts renewable energy and ratepayer’s wallets. The bill is nothing but a green scam to rip off ratepayers to raise their dividends and stock prices. The only green thing about this nuclear bill package is the money PSEG is getting from the ratepayers.”