Public Service Enterprise Group (PSEG) has advised New Jersey officers it wants subsidies to proceed working its three nuclear energy models within the state, saying that with out monetary assist it would start closing its Hope Creek Generating Station and Salem Nuclear Power Plant as early as 2022.
The three reactors are the one remaining nuclear models working in New Jersey, after the closure of the Oyster Creek Nuclear Generating Station in September of final yr.
New Jersey regulators on Jan. 22 printed purposes despatched by PSEG to the state’s Board of Public Utilities (BPU) in December, through which the corporate stated it ought to qualify for as a lot as $300 million in yearly subsidies, or zero emissions credit (ZEC), underneath the state’s ZEC Act, which was authorised in May 2018. Gov. Phil Murphy (D) signed laws that requires the BPU to determine a program to assist preserve the state’s nuclear crops, as a part of the hassle for the state to scale back carbon emissions by 80% by 2050.
Permanent Closure Within Three Years
PSEG in its letter to the Board concerning Hope Creek stated, “As demonstrated within the supplies and certifications offered to the Board as a part of this software, PSEG has decided that it’s going to completely shut Hope Creek inside three years, absent a fabric monetary change, as this plant just isn’t projected to cowl the a whole bunch of tens of millions of in annual expenditures required for protected operation and the inherent dangers of operating a nuclear energy plant.” The utility stated the identical factor in its letter asking for subsidies for the Salem plant.
The Hope Creek plant has a single reactor, a 1,200-MW General Electric boiling water reactor that got here on-line in 1986. The plant’s working license expires in April 2046, in accordance with the Nuclear Regulatory Commission. The Salem plant has two models, every with a Westinghouse pressurized water reactor, and with mixed technology capability of about 2,300 MW. Unit 1 got here on-line in 1977 and is licensed to function till August 2036. Unit 2 entered service in 1981, and is licensed to function till April 2040. The Hope Creek and Salem crops are adjoining to one another at a website in Lower Alloways Creek in Salem County.
The state’s Division of the Rate Counsel, an company representing shopper pursuits in New Jersey, has stated PSEG does want subsidies to proceed working the nuclear crops. Stefanie Brand, director of the Rate Counsel, at a listening to in Hackensack, N.J., in Octoberof final yr requested that nuclear operators present the state with monetary data so a willpower might be made about whether or not subsidies are warranted. The filings launched Tuesday are redacted, and don’t embrace monetary data that PSEG offered in its software for subsidies.
BPU spokesman Peter Peretzman in an emailed assertion stated, “The monetary data is confidential in nature and never obtainable to anybody exterior the continuing, past Rate Counsel and the Independent Market Monitor.”
Subsidies Would Impact Ratepayers
As a part of New Jersey’s ZEC program, utilities might cost ratepayers an additional $zero.004 per kilowatt hour if a subsidy is authorised, and that cash would go to the nuclear crops. The $300 million determine from PSEG could be equal to about $31 to $41 per yr for the common residential ratepayer.
Brand this week stated her workplace is reviewing the purposes and can remark later this month. She stated the BPU should decide whether or not the $zero.004-per-kilowatt-hour surcharge could be an extreme cost; underneath state legislation, New Jersey ratepayers have the appropriate to utility charges that aren’t thought-about extreme.
Brand on Wednesday stated the subsidies may very well be unfair for ratepayers, notably if they’re paying increased charges to assist nuclear crops that aren’t truly financially troubled. She beforehand stated the PSEG services are making a living however…