Gov. Mikie Sherrill on Monday signed bipartisan legislation, strongly supported by NJBIA, that creates an advanced nuclear energy procurement program to meet New Jersey's energy needs and position the state as a national leader in zero-carbon, reliable nuclear power.
Growth in energy consumption has created mounting power reliability risks, and recent record-high wholesale capacity market prices have increased ratepayers’ electric bills. To reverse this trend, the Power New Jersey Act launches a competitive process for new nuclear projects to meet the state’s energy goals, protect ratepayers, and create thousands of well-paying jobs.
“This is how we don’t kick the can down the road, and we make sure in 10 years we’re not still facing a power generation problem or affordability crisis,” Sherrill said at the bill signing event at the Statehouse dubbed Nuclear Power Generation for Generations.
“This bill creates a competitive process to build new nuclear projects that can power hundreds of thousands of homes,” Sherrill said. “To be clear, this isn't a subsidy. We're setting up a program to purchase nuclear energy at a fair price, and we're making sure we do it right by our ratepayers every step of the way.”
NJBIA President & CEO Michele Siekerka and other business leaders and lawmakers joined the governor for the signing of A-4881, sponsored by Assemblyman Wayne DeAngelo (D-14), Senator John Burzichelli (D3) and other lawmakers.
“For many years, NJBIA, and our collective business community, have said that nuclear power is a critical part of an all-of-the-above approach for the future of energy here,” Siekerka said. “Our businesses, who are our job creators, and especially our manufacturers, rely upon affordable, reliable and abundant energy in order to create new jobs and power our community, power our economy, and provide the products and services that they do each and every day.”
The governor said a “nuclear renaissance” is taking shape across the nation with new partnerships and the potential availability of billions in federal funding.
“New Jersey is ready to lead again,” Sherrill said. "With one of just six sites pre-approved for new nuclear development across the country, tomorrow’s energy affordability depends on the decisions we make today.”
Land adjacent to New Jersey’s existing Salem Nuclear Power Plant and Hope Creek Nuclear Generating Station in Lower Alloways Creek has long been designated by the U.S. Nuclear Regulatory Commission (NRC) as a potential location for an additional reactor.
Estimates are that it would take at least 10 years and about $24 billion to build a large convention nuclear power reactor in New Jersey. Federal financing programs may guarantee or finance up to 80% of a project’s cost.
The Power NJ Act takes effect immediately, with the BPU expected to issue its first request for expressions of interest from potential nuclear project developers within 180 days.
The law provides a detailed process for project selection, including public hearings, economic and environmental impact analyses, and opportunities for public comment.
The law sets strong safeguards for ratepayers – including assuring that they won’t bear any costs until a project is built and supplying energy, nor be responsible for cost overruns. Other safeguards include:
- Requiring projects to secure federal financing, shifting the risk away from New Jersey ratepayers
- Requiring any project provide a net benefit to ratepayers
- Requiring at least two separate public comment periods and a public hearing in any proposed municipality
- Requiring NJBPU and NJEDA to take into account independent assessments by the Division of Rate Counsel to ensure ratepayers’ interests remain central at every step.
Burzichelli, one of the bill’s sponsors, said the bill “sends a message across the country that New Jersey is open for business in this area.”
Sherrill also used the bill-signing event to outline the immediate and longer-term steps undertaken to tackle the spike in electric rates. She noted she has previously ordered a freeze on rate hikes. She has also taken steps to increase power generation long-term by approving 18 solar and batter storage projects and ending the 50-year moratorium on new nuclear power.
