After electric bills rose 17 to 20% in New Jersey this summer, energy affordability emerged as the top issue in this year’s statewide election. This energy crisis was avoidable- and now voters have the opportunity to change the course of our state’s energy policy.
The 2019 New Jersey Energy Master Plan (NJEMP) published one year into Gov. Phil Murphy’s first term mandates the state transition from reliable coal and natural gas power to intermittent solar and wind by 2035.
As a result, New Jersey residents and businesses are facing their highest energy bills in history and the Board of Public Utilities (BPU) is issuing a $100 Residential Universal Bill Credit to offset costs notably timed to arrive just weeks ahead of Election Day.
The checks are merely a gesture- and they won’t solve the problem or reduce electric bills over the long term. As of this writing, New Jersey electricity rates are the 8th most expensive in the nation, averaging 24.88¢ per kilowatt-hour (kWh). That’s 42.4% higher than the national average (17.47¢ per kWh) and a 25% increase from a year ago. For context, the average American household consumes roughly 10,800 kWh annually.
A new Garden State Initiative (GSI) report exposed the reality of the renewable energy provisions of the NJEMP. This one section of the plan will incur an annual cost of $5 billion and result in a 35% hike in electricity rates. Despite this price tag, the Murphy administration wants to hastily codify their climate plan into law before year’s end.
Over the past seven years, five coal plants and the Oyster Creek nuclear reactor were permanently closed– representing a loss of 2,500 megawatts (MW) of net capacity. This is equivalent to powering upwards of 2.25 million homes.
In 2018, New Jersey was also a net-exporter of electricity. Fast forward eight years, it’s now a net-importer of electricity. This is not a coincidence. Today, the state consumes more energy than it produces. It imported 20% of its electricity from out-of-state power generators—primarily, Pennsylvania. Imported electricity is costlier on account of higher fuel and transmission costs.
The energy transition presented in the NJEMP is a mirage at best: Natural gas and nuclear power still cumulatively supply over 90% of the state’s net electricity generation. Renewables, including solar, barely supply 8% of the state’s power. And New Jersey relies even more heavily on the coal generated power that we purchase from Pennsylvania to meet our energy needs.
In this time of rising electricity demand, America—especially New Jersey—needs reliable, durable, abundant power like new natural gas and nuclear energy.
Instead of codifying the outdated 2019 Energy Master Plan, we need to explore the feasibility of constructing small modular reactors (SMRs) and reform the Energy Master Plan to deemphasize intermittent solar and wind energy.
Earlier this summer, Independent Women’s Voice polled New Jersey swing voters about energy issues. 80% of likely swing voters expressed concern about grid reliability and rising energy bills. When respondents learned that the Murphy administration’s climate policies, namely his Energy Master Plan, invited the 20% electricity rate hike, 53%of women indicated they were less supportive of oil, natural gas, and coal phaseouts.
There are two paths for New Jerseyans to choose this November. Your vote will likely have a direct result on your electric bill. Choose carefully.
Audrey Lane is president of the Garden State Initiative, a New Jersey think tank focused on the state’s economy. Gabriella Hoffman is director of Independent Women’s Voice’s Center for Energy and Conservation.