Murphy Sells Out: Signs PSEG Nuclear Subsidy

Governor Murphy has signed S2313 (Sweeney)/ A3724 (McKeon) into law. The bill directs the Board of Public Utilities (board) to establish a Zero Emission Certificate (ZEC) program. Under the bill, a ZEC is a certificate, issued by the board or its designee, representing the fuel diversity, air quality, and other environmental attributes of one megawatt-hour of electricity generated by an eligible nuclear power plant selected by the board to participate in the ZEC program. Jeff Tittel, Director of the New Jersey Sierra Club, released the following statement:

“The Governor is giving PSEG the biggest subsidy in state history for their nuclear plants: $300 million a year. This legislation lacks oversight, scrutiny, or transparency. It also blocks 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 at the expense of the ratepayers and environment of New Jersey. Murphy should’ve signed it with a glow-in-the-dark pen because this bill is radioactive to ratepayers and the environment.

“The legislation requires consumers to buy 40% of electricity from nuclear power plants. There is no sunset provision, so this can go on indefinitely. If we must buy 40% of our electricity from nuclear, we will never get to 100% renewable energy. Next year, when Oyster Creek Nuclear Plant closes, NJ will only be producing 31% of our power by nuclear. This means we’ll have to go out-of-state to get enough power to reach the 40%. If we expand more natural gas power plants, we’ll end up buying even more out-of-state nuclear power to make up for it. Just like nuclear waste, this is forever. It’s incredulous that they’re holding their bill signing at a solar farm considering that the bill will end NJ’s solar program and crash the market a year from now.

“The bill lacks language to protect workers and prevent out-of-state facilities from receiving subsidies. We believe that the subsidies should require an annual financial review, clawback provisions, a ten-year sunset provision, and clear participation by the NJ Division of Rate Council. It also does not guarantee that when these plants close, they are dedicated to being replaced with renewable energy. The only green thing about this nuclear bill package is the money PSEG is getting from the ratepayers. There’s finally something that Sweeney and Murphy agree on: subsiding nukes at the expense of the ratepayers and environment.

“PSEG cannot be trusted: there were 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? Putting out all this hot air to defend the indefensible, saying that this will reduce greenhouse gasses when it won’t. In reality, the nuclear subsidy will hurt renewable energy.

“New Jersey is giving them a huge nuclear subsidy deal despite them already getting $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 yet we’re giving it to them anyway.

“The New Jersey Sierra Club is considering legal action against this new law both at the federal and the state level. We believe this violates the Interstate Commerce Clause because giving PSEG subsidies for their nuclear plants is unfair to the ratepayers and energy users. It gives them an unfair advantage over other sources of energy, especially renewable sources such as solar and wind.

“This bill will block our path to renewable energy and cost the ratepayers. 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. This is a regressive tax that especially hurts people of modest means and low-income, all to help the PSEG stockholders.”