PSEG Submits Application for Zero Emission Certificates to Continue to Preserve New Jersey's Largest Source of Carbon-Free Electricity

Rhea-AI Summary

PSEG has filed applications to extend Zero Emission Certificates (ZECs) for the Salem and Hope Creek nuclear plants in New Jersey, vital for maintaining the state’s largest carbon-free energy source. Currently, nuclear energy accounts for over 90% of New Jersey's carbon-free electricity, contributing to the state's target of a 100% carbon-free supply by 2050. PSEG's request follows deteriorating market conditions, which increase financial pressures on nuclear plants. Studies suggest closing these plants could raise energy bills by $400 million annually, underscoring the economic and environmental necessity of this initiative.

Positive

• Extending ZECs will help preserve New Jersey's largest source of carbon-free electricity.
• Nuclear energy contributes over 90% of the state's carbon-free energy, supporting clean energy goals.

Negative

• Deteriorating power markets increase financial pressures on New Jersey's nuclear plants.
• Closing nuclear plants could lead to a $400 million annual increase in energy bills.

NEWARK, N.J., Oct. 1, 2020 /PRNewswire/ -- PSEG today filed applications to extend Zero Emission Certificates (ZECs) for the Salem and Hope Creek nuclear power plants in Salem County in order to preserve New Jersey's largest carbon-free source of electricity and help New Jersey achieve its clean energy goals.

Thanks to PSEG's nuclear plants, nearly 40% of New Jersey's energy supply is already carbon-free. Nuclear energy delivers more than 90% of all of the state's carbon-free energy and is essential to New Jersey's ability to successfully achieve its goal of a 100% carbon-free energy supply by 2050, as outlined in the state's Energy Master Plan and documented by numerous independent studies.

"Nuclear energy already is New Jersey's largest source of carbon-free electricity. No other energy source currently comes close," said Rick Thigpen, PSEG's senior vice president for Corporate Citizenship. "We want to continue to partner with Gov. Phil Murphy and other state leaders to ensure that New Jersey's nuclear plants are able to continue generating electricity – while producing zero carbon emissions – long into the future."

"New Jersey can only achieve its ambitious clean energy goals with nuclear energy in the mix," Thigpen said.

PSEG's applications seek an extension of ZECs that were first established last year. On April 18, 2019, the New Jersey Board of Public Utilities issued an order determining that PSEG's Hope Creek, Salem 1 and Salem 2 nuclear plants were eligible to receive ZECs from April 18, 2019, through May 31, 2022. As a result, New Jersey has continued to benefit from the air quality, fuel diversity and energy resiliency delivered by the plants. PSEG now is applying for a three-year extension of the ZEC program.

Since the first ZECs eligibility period began, power markets have deteriorated significantly, thus the financial needs of New Jersey's nuclear plants have continued to grow. Nationwide, nuclear plants continue to struggle economically to survive. Since 2018, three nuclear plants have closed in the eastern U.S., all for economic reasons, and the impact has had a ripple effect. If New Jersey's nuclear plants were forced to shut down, as well, the carbon-free energy they produce would primarily be replaced by existing fossil resources. The increased fossil generation would cause an immediate increase in carbon emissions, reducing air quality and working against the state's long-term clean energy goals.

Moreover, preservation of PSEG's New Jersey nuclear plants will help keep everyone's energy costs down, with independent studies forecasting a $400-million-per-year increase in customers' energy bills if these nuclear plants were to close.

"New Jersey's ongoing support for nuclear energy is a wise investment in clean energy," Thigpen said. "At PSEG, we're committed to supporting our state and doing what is in the best interests of our customers and communities. Working together, we can ensure the state is able to produce the electricity we need to power our homes and businesses without producing the carbon emissions we don't."

For more information and documentation in support of PSEG's ZEC applications, please click here.

Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 12 consecutive years (https://corporate.pseg.com).

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Forward-Looking Statement
The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the corporate website to review new postings. The "Email Alerts" link at https://investor.pseg.com may be used to enroll to receive automatic email alerts regarding new postings.

CONTACTS:     

Investor Relations	Media Relations
Carlotta Chan	Marijke Shugrue
Carlotta.Chan@pseg.com	Marijke.Shugrue@pseg.com
973-430-6565	908-531-4253

 

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SOURCE PSEG

FAQ

What are Zero Emission Certificates (ZECs) related to PSEG?

ZECs are credits awarded to nuclear power plants for producing carbon-free electricity, aiding in financial stability.

Why is PSEG applying for an extension of ZECs for its nuclear plants?

PSEG seeks to ensure the continued operation of its nuclear plants, crucial for New Jersey's clean energy targets.

What impact do PSEG's nuclear plants have on New Jersey's energy supply?

They provide over 90% of the state's carbon-free electricity essential for achieving a 100% clean energy supply by 2050.

How much could energy bills increase if PSEG's nuclear plants close?

Independent studies forecast a $400 million annual increase in energy bills if the plants are shut down.

What is the significance of PSEG's nuclear plants for New Jersey's environmental goals?

They are critical for maintaining low carbon emissions and supporting the state's ambitious clean energy objectives.