For Immediate Release
Contact: Jeff Tittel, NJ Sierra Club, 609-558-9100
Today at the NJ Board of Public Utilities PSE&G filed to receive its ZEC Certificates for its nuclear power plants. In the Matter of the Implementation of L. 2018, c. 16 Regarding the Establishment of a Zero Emission Certificate Program for Eligible Nuclear Power Plants. This includes an application for Zero Emission Certificates of Salem 1 Nuclear Power Plant, Salem 2 Nuclear Power Plant.
“Grab your wallets, PSE&G is back, they just filed to get another unneeded nuclear subsidy. Just when you thought we were done with nuclear subsidies, they’re back. Last year BPU approved $300 million in subsidies to these nuclear facilities and they will probably approve another $300 million this year even though it is not needed. We oppose these subsidies. These companies are making money and are profitable. More importantly, it takes away money from renewable energy, hurts the environment and consumers,” said Jeff Tittel, Director of the New Jersey Sierra Club.Last year, BPU staff recommended against these nuclear subsidies but the board did it anyway. Other states are investigating these types of programs and how they got passed. This money should be going to renewable energy, not in the pockets of multimillion-dollar energy companies.”
According to an ITEP tax report, PSE&G made almost $1.8 billion in profits in 2018 on $9.7 billion in revenues. The company paid zero in federal taxes. That translates to a return of 18 percent. This comes from the same company that recently threatened to close their nuclear power plants if they didn’t get subsidies from BPU.
“PSE&G got $300 million from ratepayers last year when they paid no taxes on $1.8 billion in profits. Now they are trying to grab even more money. This is more than shameful since they made over 18% profit in one year without paying any taxes. This nuclear subsidy is just a regressive tax on working families and a huge subsidy for a company that doesn’t need it. This is just downright shameful. This Families are struggling to pay taxes and their electric bills keep going up. PSEG keeps raising rates on them so they can boost their profits even higher and they don’t pay any taxes at all,” said Tittel. “This is all about greed and not need. PSE&G have been bulling their way into getting what they want even if they don’t need it. The subsidy will be used to go out as PSE&G dividends and its stockholders instead of going towards renewable energy.”
The Nuclear Subsidy Law requires the NJ BPU to create a program and mechanism for the issuance of Zero Emission Certificates (“ZECs”). This law is the biggest subsidy in state history, $300 million a year for PSEG’s nuclear plants. The law also requires consumers to buy 40% of electricity from nuclear power plants.
“These plants are being subsidized by New Jersey but BPU does not look at the amount of power going out of the state that is subsidized. That’s why it is critical for BPU to look out how much each plant is generating and how much power is staying in New Jersey or out of state. Companies receiving subsidies should not be able to double dip from receiving federal benefits, PJM monies, and money from RGGI,” said Tittel. “Our concern is that any one of these companies that own plants within the PJM region will be able to qualify for ZEC credits if they need them or not. New Jersey ratepayers should not have to subsidize in and out of state nuclear plants to compensate for nuclear requirements. PSE&G are looking to build a power line from Maryland to Delaware and use New Jersey subsidies to do it. This is why we need BPU to make the application process more transparent.”
The Nuclear Subsidy Law requires the NJ BPU to create a program and mechanism for the issuance of Zero Emission Certificates (“ZECs”). This law is the biggest subsidy in state history, $300 million a year for PSEG’s nuclear plants. The law also requires consumers to buy 40% of electricity from nuclear power plants. Under the ZEC program, eligible nuclear power units that demonstrate a need would be designated to receive credits to maintain the state’s nuclear energy supply.
“Our concern is that the subsidy money going to nuclear power will undermine the funding we need for renewable energy. Nuclear power should not be considered a long-term solution, nor should it be considered an ultimate goal for green energy. New Jersey ratepayers will be paying $300 million a year for this nuclear subsidy so it is critical that the application process is not a sham. BPU needs to make the application process transparent and require all applicants to open their books to the public and bring in an outside auditor to make sure that these nuclear facilities actually need the money,” said Jeff Tittel, Director of the New Jersey Sierra Club. “We need to make sure we are allowing for growth of renewable sources such as solar and wind and that this law and any rules or regulations that come from it do not inhibit that growth.”
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