The New Jersey Business & Industry Association (NJBIA) is urging policymakers to consider immediate in-state natural gas generation as the state aims for 100% clean energy by 2035. This call comes amid challenges facing the offshore wind industry in New Jersey.
Ray Cantor, NJBIA Deputy Chief Government Affairs Officer, stated, "As we have been saying for years, we need to be realistic and not ideological when it comes to our energy policy in New Jersey." He emphasized the need to avoid policies that simultaneously increase electricity usage while shutting down clean natural gas generation.
Cantor warned of potential future impacts on energy bills and highlighted the growing demand from data centers and other technologies. He called for an immediate reversal of current course to address these issues.
Electricity supply purchases through auctions are common practice for utility providers in New Jersey. Recently, winning prices for the state's 24th annual electricity auction increased across all four regulated Electric Distribution Companies (EDCs). As a result, starting June 1, residents can expect average monthly bill increases between 17.23% and 20.20%, depending on their service territory.
Gov. Phil Murphy has criticized PJM Interconnection—the grid operator for New Jersey—over its basic generation service cost structures and auction rules excluding certain generation capacities. While Cantor acknowledged some merit in these criticisms, he stressed they are not the primary reason behind significant energy price hikes.
"The bottom line is we're a state that doesn't produce enough energy to keep our own lights on," Cantor said. He noted the absence of realistic plans to boost in-state generation amid rising demand.
Currently, New Jersey's emission standard for natural gas generation stands at 1,000 lbs CO2/MWh—a level slightly below PJM's carbon emission standard. "Thus, we can build new, clean natural gas electric generation without impacting the amount of carbon that is currently being emitted," Cantor explained.
He also urged prioritizing nuclear power and small modular reactors within the state's energy strategy. Although existing nuclear power is supported by Murphy's Energy Master Plan, no new plants have been proposed.
Cantor concluded with a call for federal action: "Our federal government also needs to simplify the process to quicken the generation of nuclear power."
