New Jersey's Energy Master Plan update should emphasize reliability and affordability, according to the New Jersey Business & Industry Association (NJBIA). In comments submitted to the Board of Public Utilities, NJBIA Deputy Chief Government Affairs Officer Ray Cantor highlighted concerns about electricity rate increases and energy blackouts in Europe as examples of potential pitfalls if grid capacity and costs are overlooked.
Cantor noted that "recent events at the capacity auction at PJM will result in electricity rate increases of up to 20%." He also mentioned that "the offshore wind industry, touted by the Murphy administration as the key to a carbon-free energy transition, is on hold for the foreseeable future."
He further pointed out issues in Europe where "clean energy policies have led to the deindustrialization of major economies while not significantly impacting global carbon emissions." Spain, Portugal, and parts of France are experiencing blackouts due to an imbalance in their grids.
Cantor emphasized that decisions made now will affect New Jersey's economic growth and grid reliability. He urged pragmatism and clarity in policy-making: "We need to be pragmatic, cautious, and clear-eyed. We need to make the tough, but right decisions."
To ensure a successful transition without harming ratepayers or the economy, Cantor proposed 12 policies for consideration. These include prioritizing reliability and affordability, easing deadlines for carbon emission reductions, repealing certain DEP rules on natural gas power plants, encouraging new natural gas facilities alongside solar and wind power when feasible, studying grid reliability with intermittent sources, planning grid upgrades with regulatory changes, reforming PJM auctions, increasing nuclear power reliance for carbon-free generation, promoting alternative fuels that lower emissions rather than focusing solely on zero-emission options, and ensuring cost transparency.
Cantor stressed that affordability should guide New Jersey’s energy policy: “We do recognize that the development of new sources of power and grid upgrades will have an added cost that must be borne.” He called for transparency regarding these costs: “We need to account for all costs of compliance.”
For further details on NJBIA’s recommendations for updating the Energy Master Plan, Cantor's full letter can be consulted.
