Prieto is Right: Nuclear Subsidy Bill is Wrong

Assembly Speaker Prieto has released a statement explaining why he did not post S3560 (Sweeney/Smith), the bill that supports subsidies for PSEG’s nuclear plants here in New Jersey. Under this bill, PSEG would have been able to start receiving subsidies within a year, despite being profitable enough to have bid into auction. It also includes subsidies to fix up their plants. The New Jersey Sierra Club has opposed this bill and testified against it because it would tie Governor-Elect Murphy’s hands when it comes to promoting renewable energy. Jeff Tittel, Director of the New Jersey Sierra Club has released the following statement:  

“Speaker Prieto has got it right; he understands that this bill is bad for the ratepayers and bad for the environment. He understands that it will tie the hands of the next Governor from working on comprehensive energy legislation in the public interest. It is PSEG and the bill’s sponsors that are holding ratepayers and clean energy hostage with this legislation and trying to ram it through lame duck. PSEG is already turning a profit on these plants and there is no need for the public to be giving them any more money. We are happy to see this terrible subsidy bill stopped. Now we can move forward with 100% renewable energy by 2050. This is not only a win for the ratepayers, but a victory for renewable energy and green economy.

“We want to thank Speaker Prieto for standing up for the people of New Jersey. The bill is nothing but a direct subsidy from the ratepayers hidden in gobbledygook. Estimates put the subsidies at $320 million a year, which would cost each NJ household almost $41 a year. There are plans currently from the Trump Administration for nuclear subsidies at three different agencies. This means PSEG could double or even triple dip. PSEG wanted deregulation to allow their plants to compete in the marketplace. Now they that got it, they want more subsidies. They’ve already received billions in subsidies under the Stranded Assest program, despite the plants being profitable.

“Senator Sweeney may still try to push this bill through but Speaker Prieto is doing the right thing for the ratepayers and the environment. The combination of cheap natural gas and subsidized nuclear plants would seriously hamper, if not block, Murphy’s goal of 100% renewable energy by 2050. Unlike bills in other states, this nuclear subsidy bill does not have any language that protects or promotes renewable energy. This means that when the plants close, they can be replaced with natural gas. We want to make sure we’re not subsidizing nuclear plants, but more importantly that when the plants close, they need to be replaced by renewable energy. Now the next Governor’s hands won’t be tied and we can move forward with a 100% renewable future. We will keep fighting any of these kinds of subsidizes that block that goal.”

Assemblyman Prieto’s statement is as follows:

“I never promised to post this bill. I only agreed to hear testimony on it so all sides could have their voices heard. That testimony clearly showed there are many concerns from consumers, environmentalists and businesses about this proposed legislation and its impact on New Jersey ratepayers. That’s why this bill and its considerable subsidy was never posted for a vote in the Assembly.

“No bill is being held hostage, and to make such a claim is a ridiculous exaggeration. PSE&G itself has said the nuclear plants are turning a profit and will for at least two more years. The supporters of this complex bill are of course free to continue working on it with PSE&G, soon-to-be Governor Murphy and the incoming legislative leadership to ensure that – when all is said and done – any legislation is completely in the public’s best interest.”