In Letter to Governor, NJ Businesses Oppose Subsidized Power Plant Scheme

By Tom Johnson, courtesy of NJ Spotlight.

In a break with a few trade groups here, 14 businesses in New Jersey are calling on the Christie administration to halt its efforts to develop new power plants in the state through hefty ratepayer subsidies.

In a letter to Gov. Chris Christie, the executives of those firms argued the competitive wholesale and retail electricity markets are critical to their viability in tough economic times.

"We’re concerned that energy policy in New Jersey is shifting away from the successful competitive market embraced over the last decade to a government control model focused on subsidies which will ultimately lead to higher prices," the executives said in the letter released yesterday.

Strong Supporters

The stance taken by the businesses contrasts with the support from the New Jersey Business & Industry Association and Chemistry Industry Council of New Jersey, which strongly backed efforts by the legislature and Christie administration to develop a pilot program to help finance three new power plants with subsidies from ratepayers.

They argue that whatever subsidies are paid by consumers and businesses -- projected to run $1.6 billion -- will be more than offset by a drop in overall energy costs by having nearly 2,000 megawatts of new generation available in New Jersey, a step that would reduce congestion and capacity prices that cost consumers billions each year.

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NJ Spotlight is an issue-driven news website that provides critical insight to New Jersey’s communities and businesses. It is non-partisan, independent, policy-centered and community-minded.