New Jersey Governor Signs Nuclear Power Subsidy Bill into Law

Nuclear Power Industry

Scott DiSavino of Reuters reports thats New Jersey Governor Phil Murphy signed several legislative initiatives on Wednesday to advance the state’s clean energy goals, including a somewhat controversial bill that would subsidize the continued operation of nuclear power plants [in order to offset to impact of cheap natural gas and uncertain and reliable solar and wind projects]. The new nuclear law, which could provide about $300 million a year to the plants, establishes a Zero Emissions Certificate (ZEC) program to maintain New Jersey’s nuclear energy supply, which contributes close to 40 percent of the state’s electric capacity and is by far its largest source of carbon free energy. Plants seeking to participate in the program would be required, among other things, to demonstrate that they make a significant contribution to New Jersey air quality and are at risk of closure within three years [by monitoring local gas and coal prices.] The four reactors operating in New Jersey are capable of generating over 4,100 megawatts (MW) of electricity. Three are located at the Salem-Hope Creek nuclear plant and are operated by a unit of Public Service Enterprise Group Inc, the state’s biggest power company. One megawatt can power about 1,000 U.S. homes.

The other reactor, Oyster Creek, is owned by Exelon Corp, which also owns part of the Salem reactors. Exelon plans to shut Oyster Creek in October 2018 under a long-standing agreement with the state. “Exelon commends New Jersey Governor Phil Murphy...by signing into law a package of legislation that will help to preserve 90 percent of New Jersey’s carbon-free power, protect 5,800 jobs and save residents and businesses $400 million on their electric bills [relative to the estimated cost of future gas and renewable prices],” Exelon said in a statement. PSEG has warned that it could shut its reactors if they do not receive some sort of federal or state assistance [to offset the cheap prices offered by fossil fuel sources of energy]. Nuclear operators have shut several reactors over the past five years and plan to close more [as cheap natural gas from shale fields has temporarily depressed power prices, making it uneconomic for generators to keep otherwise low costs of current operating some nuclear plants].

The new law makes New Jersey the fourth state after New York, Illinois and Connecticut to adopt a program to provide a new revenue stream to keep nuclear reactors in service to help meet the states’ greenhouse gas reduction goals. Other states with reactors set to retire over the next few years for economic reasons, like Pennsylvania and Ohio, and officials in the U.S. Energy Department are also looking at programs to [protect nuclear plants from temporary low gas and coal prices.]

In New Jersey, Murphy also signed legislation requiring 50 percent of the state’s power come from renewable sources at some time in the future but by 2030, a plan to build 3,500 MW of offshore wind by 2030, a plan to implement energy efficiency programs [claiming to reduce coal and gas usage], and a plan to achieve 2,000 MW of energy storage by 2030, [all of which have no track records of success and remain in the planing stages]. The governor also signed an executive order directing state agencies to develop an Energy Master Plan by June 1, 2019 that provides a path to 100 percent clean energy by 2050, [which will hopefully soon eliminate coal, and begin to phase out natural gas and other fossil fuels in favor of nuclear power and renewables , when the latters' value have been confirmed.]

“These new laws will preserve and create good-paying jobs and spur billions of dollars in investment in clean energy and energy efficiency across the state,” Ralph Izzo, Chief Executive Officer of PSEG said in a statement. But not everyone is happy with the new nuclear subsidy, including the state’s so-called ratepayer advocate, the Sierra Club, AARP and several power generators (i.e., coal, wind and solar groups) that would benefit if the nuclear reactors were to close. [Rationality, as opposed to economic misrepresentation, has apparently prevaled in New Jersey.

Pundits claim that “This bill package will mean New Jersey stays "hooked ?" on nuclear power at the expense (?) of renewables like solar and wind. It will essentially block our efforts to get to 100 percent renewable energy and will lead to a crash in our solar market,” said Jeff Tittel, Director of the New Jersey Sierra Club, in a statement. A clear sign from this commercial anti-nuclear group (Sierra Club) that their claims that renewables are ready for Prime Time in NJ were not accepted by government or the people. Maybe the Sierra Club should move back to the western U.S. and save more trees.]

Original working URL: https://uk.reuters.com/article/us-new-jersey-pseg-exelon-nuclear/new-jersey-governor-signs-nuclear-power-subsidy-bill-into-law-idUKKCN1IO2RL