For Immediate Release: November 29, 2017
New Jersey Coalition for Fair Energy Launches Campaign to “Stop the PSEG Energy Tax”
Trenton, NJ – A group of independent power producers today announced the creation of a coalition that’s opposed to any legislation that imposes a tax increase on New Jersey residents’ utility bills to support PSEG’s Salem and Hope Creek nuclear power plants.
The group, called the New Jersey Coalition for Fair Energy, is comprised of and supported by Calpine Corporation, Dynegy, NRG Energy and the Electric Power Supply Association (EPSA).
“We’re here to say that New Jersey residents can’t afford another tax increase that will cost them hundreds of millions of dollars on their electricity bills,” said coalition spokesperson Matt Fossen. “PSEG has earned billions in revenue in recent years and the company is on record saying its plants will remain financially viable in the future. The PSEG energy tax is a ‘solution’ to a problem that does not exist.”
While details on the PSEG plan are scarce because it has not publicly disclosed the exact nature of its proposal, the available data on similar endeavors in New York and Illinois indicates that a PSEG energy tax could cost residents in the range of $475 million a year or more, or in excess of $4 billion total.
“The facts on this issue are clear – a handout for PSEG will cost New Jersey ratepayers dearly,” continued Fossen. “Governor-elect Murphy and PJM, the regional electric grid, have proposed policies that will make PSEG’s nuclear plants even more profitable. They should be given a chance to work. There is no need for the Legislature to rush to pass a bill of such magnitude in a lame duck session without a full and thoughtful examination of a subsidy and its implications on the cost of electricity and its impact on a fair, level and competitive electric marketplace. The public deserves complete transparency and a review of PSEG’s finances to see if there is any basis for a ratepayer-financed subsidy. Until then, we need to stop the PSEG energy tax.”
In a April 29th investor call, PSEG officials confirmed that its plants will have positive cash flow through at least 2019.