New Jersey Opens Door to New Nuclear Plant Development

As federal leaders are making strides to expand nuclear energy development, New Jersey is following suit.

What’s going on: On Monday, Gov. Mikie Sherrill signed legislation directing state energy regulators to begin procuring at least one new nuclear power plant to meet rising energy demand over the next decade (New Jersey Monitor).

• The Power NJ Act, which cleared both legislative chambers unanimously in June, directs the New Jersey Board of Public Utilities to open a request within 180 days, for “expressions of interest” in building new nuclear power plants in the state.
• The aim: “to construct nuclear generation with the aim of bringing 1,100 megawatts of new power to New Jersey.”
• The move follows Sherrill’s April signing of legislation ending a 50-year “de facto moratorium on new nuclear plants” in the state.

The details: Under the new procurement process, which will be managed by the board and the New Jersey Economic Development Authority, developers have 60 days from the expression of interest issuance “to submit proposals with regulatory, environmental, financial and workforce information” (World Nuclear News).

• The board will have 90 days (until April 9, 2027) to accept or deny projects into negotiations.
• Over the following year, the board and the development authority will negotiate terms with developers.
• The board will issue a final order prior to July 8, 2028, “if a project provides a net benefit to ratepayers, costs are not unreasonable or excessive in light of customers’ overall bills and the developer has secured federal financing.”

The current nuclear picture: Two nuclear power plants-the two-unit Salem plant and the one-unit Hope Creek, both in Salem County-supply over 40% of New Jersey’s electricity and over 80% of its renewable energy supply.

The word from NJ: “As we have said for years, nuclear power is a critical component for an all-of-the-above energy approach in New Jersey,” said Michelle Siekerka, president and CEO of the New Jersey Business & Industry Association, an NAM state partner. “We thank Gov. Sherrill for taking this important step of the signing of the NJ Power Act to put us on the path for increasing much-needed energy generation, while including protections for ratepayers.”

The NAM says: On the new law, NAM President and CEO Jay Timmons said, “Governor Sherrill and bipartisan leaders in New Jersey are demonstrating strong American energy leadership.”

• “Nuclear power must be a central part of an all-of-the-above strategy that delivers reliable, affordable energy, strengthens our supply chains and keeps America competitive. … At a time of rapidly rising energy demand, America cannot afford to block responsible development of any reliable energy source.”