NJ Considers $240M PSE&G Subsidy That Would Increase Rates

New Jersey residents already pay hundreds of dollars each month for electric. Millions may have to fork over more if the state Legislature passes what some are calling a "bailout" for PSEG.

The state Legislature is pushing legislation to help save New Jersey's financially stressed nuclear power plants, a plan that could increase in energy bills, according to the New Jersey Division of Rate Counsel, an independent advocacy group appointed by Gov. Chris Christie.

The plan could provide $240 million to $320 million for nuclear power plants operated by PSEG - leading to a rate hike of at least $40.80 annually that prompted the Division of Rate Counsel to openly wish the power company "cared more about their customers."

"Your job is to put them first," Stefanie A. Brand, director, Division of Rate Counsel, said in a report provided to state lawmakers this month.

PSEG says the rate increase will actually amount to $2.60 a month or $31.20 a year, based on the New Jersey Board of Public Utilities’ standards.

Assemblyman John Burzichelli, D-Cumberland, Gloucester and Salem, said during a legislative hearing this week that the plan could save 6,000 jobs at three PSEG plants that operate in Salem County.

This is important stuff," he said in a video of his testimony. "From a policy standpoint, we have to take the steps that this legislation is allowing us to take.".

Brand said she with met residential customers who "can’t use their air conditioning in the summer because they can’t afford it, and both small businesses and large aren’t sure they can continue to do business in New Jersey if their rates keep going up at this pace.

"Let the federal, in-market solutions have a chance to work. That’s what is best for those who are your priority. "

PSEG says its two nuclear plants account for between 40 and 50 percent of electricity production in New Jersey, but they are in danger of becoming financially unviable within two years.

Michael Jennings, a PSEG spokesman, told Patch that the stakes are very high for New Jersey.

"It will cost New Jersey much more if the plants were to close – in higher health and environmental costs, reduce resilience and reliability and higher electricity costs which will harm the economy."

Jennings said his company is "sympathetic to the cost to ratepayers, but the opposition is being disingenuous and providing a false choice."

"The cost to customers will be far greater if the plants were to close, as has been demonstrated by several economic studies," he said. "And that will be a greater burden on businesses and make it more difficult to achieve the clean energy future we all want."

Environmental groups, meanwhile, criticized the proposal.

"PSEG is pushing for a massive lame-duck bailout of their profitable nuclear facilities. This is an outrageous overreach and we need the Legislature to reject this last-minute push to rob ratepayers and undermine the incoming Murphy Administration’s clean energy agenda," said Doug O'Malley, director of Environment New Jersey.

"PSEG is angling for a massive Christmas gift, and we need the public to know they're about to get fleeced.”

Jeff Tittel, director of the New Jersey Sierra Club, accused the state Legislature of trying to turn Gov.-elect Phil Murphy into a "lame duck when it comes to renewable energy," since he'll have no say in the matter before he's sworn-in on Jan. 16.

"If this massive subsidy passes, it will undermine or prevent NJ from moving forward with 100 percent by 2050," he said. "What the Legislature and Christie are doing is unconscionable; not only are they robbing New Jersey, they are robbing our future. This is why we can not let them become the Grinch that Stole Christmas and Renewable Energy."

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