The Wolfe Power Trip

Research evidence excerpt

The Wolfe Power Trip

ind. This

would provide financial support for nuclear through a contract for differences with a mechanism called

Reliable Capacity Certificates (RCC). Back on 2/24, as natural gas procurement bill (A4491) was introduced

that would use a financial mechanism called Natural Gas Energy Certificates (NGEC). It’s unclear if PSE&G

would be allowed to participate in either, but even so it’s possible this is derisked enough for Power to

participate. Finally, another bill was introduce in May that was aimed at streamlining permitting pathways for

natural gas plant modernization (A4882). These bills are sitting with in committee.

On the affordability front in New Jersey, this year’s BGS auction resulted in only negligible summer bill

changes. We got results on 2/12 – PSEG/PEG bills were down $3/month, ACE/EXC bills were flat, and

JCPL/FE bills were up $2/month (they still have the lowest overall bills). So no one’s bill will move more than

2% and this is before any offsets from one-time ZEC refunds and RGGI/SBC refunds Governor Sherrill has

pointed to. Last year, the BGS auction showed electric bills jumping 17-20% in June when PJM capacity

auction results took effect – this drove heightened political sensitivity.

Last year featured a noisy gubernatorial election campaign that culminated on 11/4 when Mikie Sherrill (D)

won. As promised, on day one she put forth two Executive Orders. The first to prevent electric bill increases,

while using state programs like RGGI, ZECs, SBC as a potential offset. It also required a study within 180 days

on how to achieve long-term stabilization of electric bills. The second to open solicitations for new utility-

scale and distributed solar/batteries to help with near-term supply, plus nuclear studies to help long-term