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Subsidies for New Jersey’s nuclear power stations

What ratepayers will pay in subsidies for NJ’s nuclear power plants, nj spotlight, TOM JOHNSON, APRIL 26, 2021 PSEG pushing state regulators to move forward on a yearly subsidy of about $300 million. The state is poised once again to decide whether to subsidize New Jersey’s three remaining nuclear power plants, but unlike two years ago, the question is not so much about whether ratepayers should fund the program, but how much they should pay.

PSEG pushing state regulators to move forward on a yearly subsidy of about $300 million. The state is poised once again to decide whether to subsidize New Jersey’s three remaining nuclear power plants, but unlike two years ago, the question is not so much about whether ratepayers should fund the program, but how much they should pay.

Public Service Enterprise Group, the operator of the three plants in South Jersey, is urging state regulators to approve another yearly subsidy at the same level of roughly $300 million, awarded in April 2019. This time, however, the New Jersey Board of Public Utilities can reduce the level of subsidy, an option not available previously to the annoyance of a couple of BPU commissioners, who nevertheless went along with approving the subsidy anyway………

How other states have dealt with nuclear subsidies

In Illinois, Exelon Generation has threatened to shutter two of its power plants. The governor of Illinois released an analysis earlier this month that recommends $350 million in ratepayer subsidies over five years be approved to keep them open.

Meanwhile in Ohio, nuclear plants were originally awarded ratepayer subsidies of $150 million annually, but they were repealed this spring. That happened after a scandal concerning the speaker of the Ohio House of Representatives and others over bribery allegations involving subsidies intended for FirstEnergy Solutions, a former subsidiary of FirstEnergy, to be approved.

For some critics, all of that raises the question of how long states will have to subsidize these plants.

“This is a habit that won’t go away and only increase over time,’’ said Steven Goldenberg, an attorney for the New Jersey Large Energy Users Coalition, and a participant in the last two zero-emissions credits (ZEC) cases. As the nuclear plants age, the companies will keep asking ratepayers to fund huge capital investments, he said…….

Opponents of the subsidy dispute the company’s claims. The Division of Rate Counsel’s review of PSEG’s applications claims the company overstates its projected costs and underestimates projected revenues……..https://www.njspotlight.com/2021/04/what-ratepayers-will-pay-in-subsidies-for-njs-nuclear-power-plants/

April 27, 2021 - Posted by | business and costs, politics, USA

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