New Jersey to evaluate best strategy to achieve clean energy goals at lowest cost

Published on March 31, 2020 by Dave Kovaleski


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The New Jersey Board of Public Utilities (NJBPU) is evaluating alternatives to participating in the regional capacity market administered by PJM Interconnection so that it can best achieve its clean energy goals while keeping consumer costs as low as possible.

The investigation follows a December 2019 decision by the Federal Energy Regulatory Commission (FERC) that expanded the Minimum Offer Price Rule (MOPR) in the regional capacity market that will support fossil fuel generation. That will make it more expensive for New Jersey to achieve its clean energy goals.

“Today’s action by the Board is an opportunity to help us achieve Governor Murphy’s goal of 100 percent clean energy by 2050, while potentially lowering costs to customers,” NJBPU President Joseph Fiordaliso said. “Taking control of our own resource mix may be the only way to stop the Trump Administration’s attempts to prop up fossil fuels to the detriment of our clean energy program. We will do everything in our power to prevent that from happening.”

The investigation will involve written comments, technical conferences, public hearings, and further proceedings as appropriate. The first step is to open a public comment period. The board is seeking responses to the following questions:

• Can New Jersey utilize the Fixed Resource Requirement (FRR) alternative to satisfy the State’s resource adequacy needs?
• Can New Jersey utilize the FRR to accelerate achievement of New Jersey clean energy goals?
• Can modifications to NJBPU’s Basic Generation Service construct facilitate resource adequacy procurements aligned with the Energy Master Plan clean energy objectives?
• Can other mechanisms, such as a Clean Energy Standard or Clean Energy Market, facilitate achievement of New Jersey’s clean energy goals?

Given the inability to schedule in-person public meetings at this time, board staff will only accept written comments electronically. Comments are due by April 29, 2020.

If the investigation determines that the state cannot achieve its goals through the existing paradigm, then NJBPU staff will recommend how best to meet the state’s energy needs. Recommendations could include New Jersey leaving the PJM capacity market to ensure that the state can realize a clean energy future at reasonable prices.