NJ Assembly panel advances bill aimed at nuclear power expansion
A New Jersey Assembly panel approved a bill to expand nuclear power in the state by creating a subsidy structure for new plants. Opponents are concerned about ratepayer cost increases, particularly arguing that data centers' energy demands are causing rate spikes and they, not ratepayers, should bear the cost. The bill aims to strengthen energy infrastructure and provide stable power but faces criticism regarding cost and timeline.
A New Jersey legislative panel, the Assembly's utilities committee, unanimously approved a bill Thursday that would direct state energy regulators to solicit bids for new nuclear power plants. The legislation aims to create a subsidy structure to support the construction of at least 1,100 megawatts of nuclear electricity generation, requiring electric distribution companies like PSEG and Atlantic City Electric to purchase certificates annually to fund these projects. Assemblyman Wayne DeAngelo (D-Mercer), the bill's sponsor, highlighted the potential for advanced nuclear technology to strengthen energy infrastructure, support jobs, and provide a stable power source.
However, the bill faced significant opposition due to concerns about increased costs for ratepayers. Rate Counsel Brian Lipman argued that the burden of funding new nuclear projects, prompted by the massive energy demands of artificial intelligence data centers, should not fall on households already facing high energy prices. Lipman also expressed concerns about 40-year subsidy levels potentially leading to overpayments if energy prices drop, advocating for provisions that would allow the utilities board to abandon overly costly projects.
While union and business groups, including the International Brotherhood of Electrical Workers local 94, supported the measure for its job creation and reliable baseload power benefits, critics like Dave Pringle of Empower New Jersey questioned the long timelines and high environmental and financial costs of nuclear power compared to faster-to-deploy renewable energy alternatives. The debate underscores the state's struggle to balance energy security, economic development, and affordability in the face of growing electricity demands.