Sherrill-backed nuclear power expansion makes gain in Legislature
A New Jersey Assembly committee unanimously approved a bill to foster nuclear power generation amid soaring electricity costs, with an identical bill passing a Senate committee. While supporters say it will curb rising energy prices, opponents cite high costs and long development times for nuclear plants. The bill's necessity is linked to increased demand, with data centers identified as a primary driver, raising concerns about ratepayers subsidizing these energy-hungry facilities.
An Assembly committee in New Jersey has unanimously approved the Power NJ Act, a bill designed to encourage the construction of advanced nuclear energy facilities within the state. The move comes as New Jersey faces rising electricity costs, with current nuclear plants providing about 40% of the state's power. Governor Mikie Sherrill, a proponent of nuclear expansion, previously lifted regulations on radioactive waste storage to facilitate new plant development.
The proposed legislation directs the Board of Public Utilities and the state Economic Development Authority to procure these facilities, with supporters arguing it will help control electric power costs. However, opponents, including David Pringle from Empower NJ and Doug O'Malley from Environment New Jersey, raised concerns before the Assembly State and Local Government Committee, highlighting the high cost and lengthy development times of nuclear plants compared to "cheaper, faster, cleaner options" like hydrothermal, wind, and solar.
A key point of contention is the impact of energy demand from data centers. David Wand, assistant deputy of the Division of the Rate Counsel, stated, "There can be no doubt that data centers are driving the surge in demand," and expressed concern that the bill would lead to New Jersey ratepayers subsidizing data center-driven costs. He emphasized that ratepayers should not bear the burden or risk for generation needed to meet this demand.
Despite opposition, proponents like Ray Canter of the New Jersey Business & Industry Association and Assemblyman Robert Karabinchak (D-Middlesex), who chairs the committee, view nuclear power as a necessary, long-term solution to address future energy needs and transform New Jersey's energy landscape. An identical bill also passed unanimously in a Senate committee on June 8.