Rate hike for nuclear power falls victim to legislative infighting

New Jersey's legislative leaders have deadlocked over a bill to raise electric rates to keep two nuclear power plants from shutting down, preventing the legislation from getting a vote in the final days of the current legislative term.

The standoff between state Senate President Stephen Sweeney, D-Gloucester, and Assembly Speaker Vincent Prieto, D-Hudson, effectively kills an effort by Public Service Enterprise Group to add a surcharge of $30 to $40 a year to residential electric bills to subsidize its two nuclear power plants in Salem County.

The company's chief executive, Ralph Izzo, has said the reactors, responsible for 40 percent of the state's electric power, would close without the subsidy.

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Sweeney, who championed the company's cause, bitterly lashed out at Prieto over the speaker's decision not to put the bill up to a vote in the Assembly before the lame-duck session ends next week

“Disappointed? No, I am downright angry," Sweeney said in a statement from his office. This is a failure of the speaker’s responsibility to his members and yet another example of his valueless word."

Prieto, whose term as speaker ends next week, called Sweeney's statement a "ridiculous exaggeration" and said there's no rush to approve the legislation in the next few days.

"PSE&G itself has said the nuclear plants are turning a profit and will for at least two more years," Prieto said in a statement. "The supporters of this complex bill are of course free to continue working on it with PSE&G, soon-to-be Governor Murphy and the incoming legislative leadership to ensure that -- when all is said and done -- any legislation is completely in the public’s best interest.”

PSEG, whose Public Service Electric & Gas Co. provides electric power to 2.2 million homes and businesses, has lobbied lawmakers for a surcharge that the company calls necessary to keep nuclear power competitive with natural gas, which has become cheaper because of expanded shale exploration.

Izzo has said the company has been making its case for years, but no bill was introduced until last month. Lawmakers have until Tuesday to vote on bills during the current session, and Gov. Chris Christie turns over the governor's office to Democrat Phil Murphy on Jan. 16.

Christie has indicated support for the idea of a subsidy for nuclear power, while Murphy hasn't taken a public position.

Jeff Tittel, the Sierra Club state director and an opponent of the PSEG proposal, said the apparent failure of the legislation will give Murphy time to consider nuclear as part of a broader energy policy.

"We've been saying all along that this would tie the hands of the next administration," Tittel said. "I think Prieto agrees with that. The Murphy administration wants to move forward with their plans for clean energy and renewable energy and this would get in their way."

PSEG spokesman Michael Jennings said the company would continue to press its case for a nuclear bailout.

"The fate of New Jersey’s nuclear generation is an urgent concern," Jennings said in a statement. "PSEG will continue to educate New Jersey’s legislators and policymakers on the economic threat facing the nuclear plants that serve our state – and the risk of increased air pollution, reduced resiliency, lost jobs and higher energy bills."