Many Public Service Electric and Gas (PSE&G) customers might already be aware of the proposed nuclear subsidy, aka nuclear tax, which would add a surcharge to residential, commercial and industrial electric bills – should the New Jersey Legislature and Gov. Chris Christie approve the tax.
The initial legislation was crow-barred through committee – just as with the federal tax bill – and must now go through final process. Apparently, the desire is to ram this through during the lame-duck session in January.
PSE&G admits that the nuclear plants are still profitable and they have yet to provide any analysis or documentation to show that a nuclear tax is needed.
They have refused to allow inspection of their books. That is, not until four years from now when it would be time for the Board of Public Utilities to consider renewing the surcharge.
Other than statements and pleadings from the president of PSE&G, we have no way of knowing if this surcharge is actually warranted.
But, I have to ask, why are New Jersey customers being held to bail out PSE&G’s nuclear operations when PSE&G also sells its electric power, generated from these nuclear plants, into a regional grid? Power that is produced in New Jersey is used by other states in our region, including Delaware and Maryland.
Nowhere in any articles related to this proposed nuclear tax have I been able to find any reference as to any other state or entity being held to pay this nuclear tax for their use of PSE&G nuclear power.
Some of New Jersey’s PSE&G customers require assistance with heating bills. The Universal Service Fund (USF) program was created by the Board of Public Utilities to help make natural gas and electric bills more affordable for low income customers.
The funding source for the USF program comes from a surcharge on natural gas and electric bills. Should the nuclear tax go into effect, will the associated USF surcharge also increase?
Per the recent federal tax bill, the corporate tax rate will be reduced from 35 percent to 21 percent starting in 2018. Utility owners will be able to keep more of the revenue from electricity sales after taxes.
The state Legislature and the governor should require that utility owners fund this nuclear tax from that 14 percent reduction in the corporate tax, rather than burdening New Jersey ratepayers with additional charges.
I urge PSE&G customers to contact their state legislators. This legislation should not be rammed through a lame-duck session – period.
Wayne R. Smith
Allentown
