Today the Board of Public Utilities (BPU) have approved  Docket No. EO18080899  in a vote 4-1, Commissioner Chivukula voted no. In the Matter of the Implementation of L. 2018, c. 16 Regarding the Establishment of a Zero Emission Certificate Program for Eligible Nuclear Power Plants.  This vote gives PSE&G one of the biggest subsidies in state history for their nuclear plants. The cost to New Jersey ratepayers will be $300 million a year.

“The BPU sold out the ratepayers and renewable energy today by going along with this unnecessary nuclear subsidy. This giveaway is about greed and not need. This subsidy will determine New Jersey’s energy policy for a generation. We are concerned that it will prevent this state from moving forward with our 100% renewable goals by 2050. Because we will have to buy 40% from nuclear from now on and the subsidy will take money away from wind and solar. This is the biggest subsidy in state history and was done behind closed doors with no transparency and put the public in the dark,” said Jeff Tittel, Director of the New Jersey Sierra Club. “PSE&G said want to save 1,000s of jobs but its for their lawyers and lobbyist who are fighting people and families for this nuclear subsidy tax. Some people rob you with a gun and others rob you with a pen. That is what just happened today.”

During today’s BPU hearing, the Commission talked a lot about climate change its impacts, however they have yet to make any movement towards stopping several proposed fossil fuel projects in New Jersey.

“If the BPU are so concerned about climate change and they are putting this subsidy through, then why aren’t they putting a moratorium on fossil fuel projects in New Jersey. The hypocrisy is that they are talking about climate change but are not doing anything to stop the 13 proposed fossil fuel projects in New Jersey like the SRL Pipeline or Meadowlands Power Plant,” said Tittel. “Fiordaliso is hiding behind climate change to justify a subsidy that is not needed. This is not about climate change, it’s about giving a blank check to PSE&G. This is also not change, it’s real dollars coming from ratepayers.”

Just yesterday, the BPU announced they will delay New Jersey’s Energy Master Plan. The EMP is a layout of how New Jersey will achieve Governor Murphy’s EO 28 and goals of achieving 100% clean energy by 2050.

“All of the work BPU put in for the nuclear subsidy has delayed the job of the department to put an EMP into play. The Energy Master Plan is supposed to be out by now, but it has been delayed till June and won’t be taken into effect until the fall. All of this delay and not moving has stalled this state’s clean energy future and is taking away from wind and solar. The big fight over this subsidy has put a chill on the legislature and administration on moving forward with renewable energy, energy storage, and electric vehicles,” said Tittel

The $300 million subsidy is annual. However, there are concerns that because there is no sunset provision in the law, this subsidy can go on indefinitely. The law requires consumers to buy 40% of electricity from nuclear power plants. Two of the plants receiving subsidies, Salem 1 and 2, operate without cooling towers to mitigate for fish kills.

“This unnecessary nuclear subsidy undermines investment and moving us forward with renewable energy. More importantly, it will block us from reaching Governor Murphy’s 100% renewable energy goal by 2050. We will never be able to diversify our energy portfolio if we have to subsidize nuclear energy forever, or even worse, subsidize out of state nuclear forever. We have given PSE&G billions already that they’ve used to kill billions of fish a year,” said Tittel. “This subsidy will not be used to move forward with renewable energy, instead it will go out as PSE&G dividends and to its stockholders. The nuclear subsidy 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. We are basically giving PSE&G a blank check.”

On Monday, PSE&G filed to close three of their nuclear power plants at Salem and Hope Creek. The notice said that if the ZECs are awarded to all three plants, the retirement submittals would be unnecessary. PSE&G were also worried about job loss if they did not receive the subsidy.

“PSE&G have been bulling their way into getting what they want. Those plants are not going to close anytime soon. Their stock and bond holders will never allow it because it is a $10 billion asset. PSE&G will save 1,000 jobs but those jobs are the lawyers and lobbyists. PSEG should be called Public Subsidize Extortion Grab because their laundry list of subsidies keeps growing at the sake of ratepayers and the environment. What’s even worse is Ralph Izzo wants 8% profit on these plants,” said Jeff Tittel, Director of the New Jersey Sierra Club. “It is unconscionable what the BPU did today. For something that is supposed to be carbon free, there is a lot of hot air from the BPU. They made history with the biggest rip off to the ratepayers of New Jersey. BPU should be called the Board of Promoting Utilities. This billion-dollar subsidy is a huge setback for New Jersey’s efforts to a clean energy future.”