Nuclear Subsidies: Christie’s Last Robbery of NJ
Just like what’s happening in Washington; in Trenton they’re trying to push through a bill that costs the middle-class money while giving rich corporations massive subsidies. Governor Christie is attempting one last robbery of the people and environment of New Jersey before he leaves office in January with S3560 (Sweeney/Smith). The bill would give PSEG subsidies for their nuclear plants in New Jersey and simultaneously tie Governor-Elect Murphy’s hands when it comes to promoting renewable energy. Cheap natural gas combined with nuclear subsidies means renewable energy gets pushed out. Christie is trying to dictate New Jersey’s energy policy for the next 40 years, despite the fact that the people want renewable energy, and this bill undermines that.
The Legislature is going along with the biggest energy tax and corporate subsidy in state history by rushing through this bill. In a reverse-Robin Hood move, they want to take billions of NJ ratepayer money and give it to PSEG to subsidize nuclear power plants that are already making money. What’s worse is that they’re rushing it through in lame duck without proper scrutiny and oversight. Christie only has a few more weeks in office but the Legislature is once again allowing him to push through legislation that undermines Phil Murphy’s renewable energy agenda.
This bill is 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. Under this bill, PSEG could start receiving subsidies within a year, despite being profitable enough to have contracts to sell electricity through 2021. It also includes subsidies to fix up their plants. The bill goes minimally through 2030 but can be extended potentially to 2046. 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. The BPU has already mismanaged nuclear power in New Jersey. They continued to give these nuclear plants subsidies at the expense of the ratepayers even when they were making money. They should be named the ‘Board of Promoting Utilities’ as they are nothing but a smokescreen to give utilities what they want.
According to PSEG, there is language that BPU must consider concerning new federal subsidies. However, they can get around this completely because the bill allows them to get both federal and state subsidies if the federal subsidy is for baseload or reliability. These subsidies may not just be for Salem and Hope Creek nuclear power plants either. They can potentially be used for other nuclear power plants that apply, including ones owned by Exxelon.
PSEG says they’re green but the only thing green about them is the money they want from ratepayers. These plants come with serious safety and health concerns. The Salem plants kill 17 billion fish a year because PSEG has lobbied to prevent them from having to build cooling towers. That is in itself another environmental subsidy. They dump superheated water into the Bay, hurting water quality and killing fish. They can’t be green with that much uranium mining pollution and nuclear waste.
While we don’t support any nuclear subsidies, other states are doing it in a way that also protects renewable energy. In those states, their nuclear subsidies are tied to renewable energy goals and replacing the plants with renewables when they close. New York’s nuclear subsidy was tied to a goal of 50% renewable by 2030 as well as closing Indian Point and coal plants. In Illinois, the 2 billion nuclear subsidy was attached to $14 billion for renewable energy. Unlike those, NJ’s 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. PSEG’s argument for these subsidies is that we will get more gas if the plants close. However, not only is there nothing written to prevent this, but they are currently building two more gas plants.
New Jersey used to be a leader in clean energy until Governor Christie was elected and now he’s trying to make it worse with his nuclear subsidy bill. The New Jersey Legislature is allowing him to use the bill not only for billions of dollars for nuclear power, but to block renewable energy. Phil Murphy committed to 100% by 2050. By passing this bill to subsidize nuclear power, it could block those goals and put New Jersey’s green economy in jeopardy. The people overwhelming want clean energy, not more money for nuclear but as usual, Governor Christie is siding with the utilities over New Jersey. This is a great Christmas giveaway to PSEG.