PSE&G’s Hope Creek Nuclear Generating Station cooling tower, Friday, Sept. 23, 2005, in Lower Alloways Creek Township Salem County.
From an Atlantic City Press editorial
Last spring, when the Board of Public Utilities first considered a $300 million a year state subsidy for New Jersey’s three nuclear plants, analysis by staff and experts suggested a smaller amount would be enough to keep the plants profitable and open.
That’s important for many reasons, among them because they generate 40% of the state’s electricity and 90% of its carbon-free power.
The BPU’s consultant, Levitan Associates, last year said plant owners PSEG and Exelon didn’t need the subsidies, a position in accord with that of the state Office of the Rate Counsel and the market monitor for the regional power grid. BPU commissioners nonetheless voted 4-1 to grant the subsidies, not taking a chance the plants might close. The plants employ 4,500 and PSEG says replacing their power with carbon-emitting natural gas plants would cost New Jersey residents billions more for their electricity.
Now Levitan has told the BPU the plants are no longer profitable. BPU staff has supported that position in a letter, according to NJ Spotlight. The staff said that even realistic revenue estimates — as opposed to the companies’ forecasts tilted low to favor subsidies — wouldn’t make the plants profitable.
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