New Jersey BPU gives approval to effectively retire last two coal plants in state
Atlantic City Electric Company (ACE) got approval from the New Jersey Board of Public Utilities (NJBPU) to modify its power purchase agreements (PPAs) and power sales agreements (PSAs) with the last two coal-fired electricity generation units in the state.
The amended agreements with Chambers Cogeneration Limited and Logan Generating Company will effectively end coal-fired generation in New Jersey after a brief transition period.
“The modified agreements are great news for the residents of New Jersey because at long last we are ending coal generation in our state,” NJBPU President Joseph Fiordaliso said. “A key goal of the Energy Master Plan is dramatically reducing greenhouse gas emissions, and today’s action by the Board is a massive step in that direction. However, this is only one piece of the larger clean energy puzzle that has been a cornerstone of the Administration’s efforts to combat climate change. We have taken tremendous strides towards meeting Governor Murphy’s goals through our offshore wind, solar, energy efficiency, and electric vehicle programs. We are full steam ahead because there is no time to waste.”
As part of the agreements, ACE will make a series of fixed monthly payments for the remaining term of the existing PSAs and PPAs. This will be partly offset by payments to ACE customers from Logan and Chambers. Overall, ACE customers will save up to $30 million over the remaining term of the existing agreements.
“Over the last several years, New Jersey has seen a steady decrease in greenhouse gas emissions because of my Administration’s aggressive approach to mitigate climate pollution, power past coal, and expand our renewable energy resource mix,” NJ Gov. Phil Murphy said. “These agreements today allow us to further shift New Jersey’s energy portfolio away from harmful coal generation and focus on clean energy technology.”
The two coal plants, owned by Starwood Energy, are expected to be retired by the end of May. Starwood Energy plans to decommission the plants and work with a clean energy developer to bring renewable energy projects to the sites.
“This is a historic decision by the BPU, as it marks the end of coal burning in New Jersey, and an important step in implementing Governor Murphy’s Energy Master Plan,” Greg Gorman, conservation chair, Sierra Club NJ Chapter, said. “We commend Atlantic City Electric for taking this critical step to lower the carbon footprint of its electric supply while at the same time securing a refund for its ratepayers. We’re also thrilled that Starwood Energy is looking to directly transition to cleaner, cheaper renewable energy at these sites, ending nearly three decades of pollution in Carneys Point and Penns Grove, historically overburdened communities on the Delaware River. This is a huge milestone in the state’s transition to a clean energy economy.”
