TRENTON — Gov. Chris Christie today signed a controversial bill supporters say will lower energy rates but critics say locks ratepayers into 15 years of subsidies for some power suppliers. The bill (S-2381) helps pave the way for LS Power Systems to build a power station in West Deptford, the hometown of Senate President Stephen Sweeney (D-Gloucester). It will...
Governor Chris Christie signs legislation during a ceremony at the Elks Club in Wayne in this December 2010 file photo.TRENTON — Gov. Chris Christie today signed a controversial bill supporters say will lower energy rates but critics say locks ratepayers into 15 years of subsidies for some power suppliers.
The bill (S-2381) helps pave the way for LS Power Systems to build a power station in West Deptford, the hometown of Senate President Stephen Sweeney (D-Gloucester). It will also give an incentive for other companies to build three other plants in the state.
Proponents of the bill, which had bipartisan support, say it will help reduce rates by increasing energy generated in-state, and create construction jobs.
Critics point out that capacity payments — a portion of energy costs paid to make sure power keeps flowing even during spikes in demand — will be set at least $232.75 per megawatt day for 15 years, even if market rates fall below that.
The bill was opposed by a coalition of environmentalists and energy supply companies, who felt that some companies were getting special treatment and were guaranteed subsidies while the public was not guaranteed lower rates.
“This is one of the biggest special interest giveaways in the history of the State of New Jersey,” said Sierra Club New Jersey executive director Jeff Tittel.
Stefanie Brand, the state’s ratepayer advocate, supported the bill, saying more electricity generation in-state will ultimately save money.