Opposes Governor Murphy's 2019 New Jersey Energy Master Plan.
Impact
The resolution asserts that implementing the Energy Master Plan could lead to adverse effects on New Jersey's economy, including job losses in the natural gas sector and a reduction in the state's GDP. It highlights specific financial concerns, stating that higher electricity rates, which are already among the highest in the nation, could exacerbate the economic strain on approximately one-third of New Jersey households currently facing high energy costs. Furthermore, the projected costs of over $33 billion for converting power generation infrastructure could impose additional financial burdens on taxpayers and utility ratepayers.
Summary
Assembly Resolution AR176 opposes Governor Murphy's 2019 New Jersey Energy Master Plan, which aims for 100 percent carbon-neutral electricity generation and maximum electrification of buildings and transportation by 2050. The resolution raises concerns about the significant financial burden that the proposed transition from oil, propane, and natural gas to electric heating would place on New Jersey households. Estimates indicate that transitioning to electric heat could cost between $4,000 and $20,000 per home, potentially forcing families to incur substantial personal expenses and increasing taxes or utility rates.
Contention
Notably, the resolution points out that the Energy Master Plan does not provide a concrete strategy for incentivizing or mandating household transitions from non-electric to electric heating sources. There are worries about overreaching regulations that may control residents' choices in their homes, and data suggesting that similar plans elsewhere have resulted in economic losses and significant job declines. Critics emphasize that any shift away from natural gas must take into account the feasibility of such a transition without imposing excessive costs on consumers.
"Energy Security and Affordability Act"; requires BPU to consider energy security, diversity, and affordability when preparing Energy Master Plan and perform economic and ratepayer impact analysis of energy generation projects and Energy Master Plan.