While some residential customers may end up paying $30 more annually, large energy users may see their bills rise by $1 million a year
Tom Johnson reports for NJ Spotlight:
It will be months before the state decides whether customers need to subsidize nuclear power, but New Jersey’s four electric utilities are already proposing how they will recover those costs.
In filings with the Board of Public Utilities, each of the utilities submitted tariffs disclosing how they will recoup the cost of buying Zero Emission Certificates (ZECs), the potential $300 million annual subsidy aimed at propping up the state’s supply of nuclear power.
The proposals are the latest in a series of filings that could boost bills to customers by billions of dollars if approved by the regulatory agency, most stemming from two bills signed into law this spring that will transform energy policy in New Jersey.
PSEG threatened to shut down units in South Jersey
The most contentious bill involved proposed subsidies to avert the closing of the three remaining nuclear power plants in New Jersey. Without financial incentives, Public Service Enterprise Group threatened to shut down the units it operates in South Jersey.
The company and advocates of the subsidies argued they are justified to preserve fuel diversity among power generators, as well as for their benefits in improving air quality and combating climate change.
In public hearings to begin tomorrow in Hackensack, the BPU will begin a two-step process of determining what nuclear plants, if any, will be awarded the subsidies. The initial proceeding is to establish the ZEC program to apply for subsidies; the second, to decide whether any plants deserve the incentives. A final decision is expected next April.
Meanwhile, each of the four utilities will hold public hearings beginning on October 17 on the proposed tariffs they have submitted. Under an order issued by the board, the utilities were required to submit the proposed tariffs by September 20.
