NJ Manufacturers are very concerned with S-3560 / A-5330 which, as part of creating a Nuclear Diversity Certificate program, would apply a surcharge to electric bills in order to subsidize nuclear power.
Manufacturers ask that time is taken to ensure that the requirements for filing for the NDCs ensure that the finances of the nuclear companies are transparent and that the provider assesses an appropriate subsidy in order to continue providing nuclear power.
While NJ certainly requires diverse, reliable and independent sources of energy, we have concerns that this specific legislation has not taken into account the direct detrimental effects on New Jersey businesses. Higher costs could move employment, production, and expansion out of state; this legislation appears to add to the impression that there isn’t an understanding by our government that cost of regulation drives jobs out of state.
The two main concerns regarding the proposed bill are:
1. It does not have sufficient transparency to ensure the amount being raised is accurate.
2. That it has extremely adverse economic impacts on large New Jersey employers which have not been properly assessed or accurately determined.
Although a $41 per year residential bill increase has been touted as a reasonable cost for the benefit some manufacturers could spend $100,000 to well over $1,000,000 in increases.
While not all manufacturers will have to pay such steep surcharges, the vast majority have concerns that it significantly will impact their ability to remain competitive in their markets.
Comments from manufacturers include:
1. “Our additional costs will be over $300,000 per year, I will limit out ability to hire and expand in the state”
2. “…we may move more work to our overseas plant”
3. “…we want to be loyal to New Jersey, but we do have plants in other states and this is one other reason to stay out of New Jersey”
4. “…we are afraid this will hurt NJ manufacturers just when the industry is beginning a resurgence”
5. “…it will effect our profit sharing; each employee will have less money to spend in NJ. It will also have an adverse impact on our ability to expand in NJ, making it even more expensive relative to other states.
6. “…Costs in NJ are already high, when comparing to other states, this is one more reason to leave”
7. “… will send a very bad message to New Jersey businesses.”
New Jersey manufacturers ask that rather than passing the bill this week, we need more discussion on how to ensure we have a reliable power grid without having such negative impact on job growth in the State. Further, we need assurances that any subsidy is determined though a fully transparent process.
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