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Star Ledger - 2008-03-29

Corzine energy plan counts on nuclear and natural sources (new window)

New Jersey probably needs another nuclear power plant, even if the state succeeds in promoting solar power, wind farms and other clean energy sources, according to an energy master plan drafted by the Corzine administration and ob tained by The Star-Ledger.

The 72-page document, the first revision of the state's energy mas ter plan in more than a decade, identifies daunting challenges to ensure New Jersey has enough electricity to keep residents' lights on and companies' computers run ning. No matter what steps the state takes, the draft plan projects higher energy bills for customers, who have been hit with double- digit increases in electric bills for each of the past three years.

More than a year in the works, the plan is shaped by three key policies adopted by Gov. Jon Corzine's administration: Cutting energy use by 20 percent by 2020; providing 20 percent of the state's electricity through renewable energy such as wind and solar power; and reducing greenhouse gas emissions. New Jersey gets about 2 percent of its energy from renewable sources.

Central to the plan are efforts to shift energy production to power plants that produce less carbon dioxide than traditional fossil-fuel stations and to sharply curb energy use.

While not explicitly calling for a new nuclear power plant, the plan concludes "the greenhouse gas mandates point toward nuclear energy to produce carbon-free electricity at a lower price per megawatt-hour than fossil-fueled plants."

Public Service Enterprise Group, the state's largest power producer, is considering building a nuclear unit in Salem County, where it already has three nuclear stations.

"We are ready to play a key role in promoting conservation and effi ciency and expanding renewable sources of energy," Ed Selover, general counsel for PSEG, said in a statement. "We are also actively evaluating the feasibility of a new nuclear plant in South Jersey."

The most cost-effective way of achieving the state's energy goals, the plan says, is to dramatically reduce energy consumption. Among other things, it recommends revis ing statewide building codes to make new construction 30 percent more energy efficient than existing buildings; adopting enhanced energy-efficiency standards for new appliances; and having state government reduce energy use by 25 percent by 2020.

The energy master plan is ex pected to be released to the public early next month. Public hearings will be held across the state before final revisions are made and submitted to the governor for his approval.

Lilo Stainton, a spokeswoman for Corzine, said the plan has not been finalized. "I can't respond to a document that is not finished," she said. 

For the most part, the plan glosses over how the state will fund various initiatives. For instance, it suggests retrofitting 3.7 million existing buildings to make them more energy efficient by upgrading 300,000 buildings per year, without identifying any specific funding sources.

To skeptics, that is a key failing of the plan.

"It's a very noble plan, but I don't see it as workable, given the political and economic climate in the state," said David Brown, vice president of NUS Consulting Group in Park Ridge, which helps businesses reduce utility bills. "The big question is who is going to pay for it.

"It is going to cost people money in the end. It is going to hurt consumers."

Dena Mottola Jaborska of Environment New Jersey, an advocacy group, argued any investment the state makes in energy efficiency re sults in four times the savings for a residential customer, and even more for commercial customers.

"We think it's the best solution to meeting our energy needs," she said of the master plan's energy ef ficiency and renewable energy goals.

Both Jaborska and Jeff Tittel of the Sierra Club, another environmental group, faulted the plan for not being more aggressive in promoting energy conservation and renewables, and questioned whether another nuclear plant is the answer.

"From what I understand, it identifies a lot of problems, but it is a moderate, middle-of-the-road report weighing options rather than taking any bold positions in moving the state forward," Tittel said.

Others welcomed the plan's acknowledgment that the state would not meet all of its energy needs through conservation and renewables.

"It sounds like it's very good at pointing out the dirty little secret that has been brewing too long," said Steven Goldenberg, an attor ney who represents big commercial and industrial customers who use a lot of energy. "We have a major infrastructure problem that is only going to get worse. We have to deal with it or we're going to have brownouts and blackouts in the near-term."

The plan soft-peddles an earlier proposal considered by the Corzine administration to create a state power authority, which would help get new power supplies built in New Jersey. While mentioning the benefits of a power authority, the plan floats another option: creation of a state energy commission to coordinate energy policy.