New Jersey on Wednesday joined New York state and Illinois in offering zero-emission credits to prevent closure of nuclear power plants.
New Jersey Gov. Phil Murphy on Wednesday signed Senate Bill 2313, which will make credits available to nuclear facilities that can show they significantly benefit the state’s air quality and could be forced to close within three years if they do not receive assistance.
New Jersey has three nuclear power plants: the single-reactor Oyster Creek Nuclear Generating Station, which owner Exelon has said will close in October; and the one-reactor Hope Creek and two-reactor Salem nuclear plants, located on the same property and operated by PSEG Nuclear.
In a press release, Exelon commended Murphy for signing the law but offered no indication it would reassess its plant o close Oyster Creek. “Exelon Generation will permanently shut down Oyster Creek later this year, at the end of its current operating cycle,” spokeswoman Suzanne D’Ambrosio said by email. “As part of an agreement with the State of New Jersey, Exelon is required to close Oyster Creek by December 2019.”
Like a number of nuclear power providers in recent years, Exelon said low wholesale power prices and other economic challenges are forcing the closure of Oyster Creek. In February, it moved up the closure date from the December 2019 date previously agreed upon with the state, partly to avoid a refueling outage next fall.
PSEG did not responsd to a request for comment Wednesday on whether it would apply for the credits.
The zero-emissions credit program is expected to cost New Jersey $300 million annually, Reuters reported.
Nuclear power plants have 210 days from Wednesday to apply for zero-emissions credits, which would be based on “the fuel diversity, air quality, and other environmental attributes of one megawatt-hour of electricity generated by an eligible nuclear power plant.” Electric utilities could then purchase credits from the plants.
Among the requirements for receiving credits, an applicant would be required, upon request, to provide the state Board of Public Utilities with financial data on the power facility, including the cost of spent fuel management.
Murphy on Wednesday inked separate legislation to boost renewable energy in the state. A separate executive order would also require preparation of an updated plan under which New Jersey would solely use clean energy sources by 2050.
