A
coalition of consumer, labor, business and environmental groups
convened a press conference at the New Jersey State House today to urge
Governor Corzine to protect New Jersey ratepayers and publicly call for
the rejection of Exelon’s takeover of PSEG. The coalition also
questioned the validity of Exelon and PSEG’s recent statements in the
media and set the record straight by affirming that Exelon’s proposed
bid to takeover New Jersey’s largest electric utility is in no way “on
track”, contrary to what PSEG CEO Jim Ferland has publicly stated.
“After
a year of discovery, testimony and evidentiary hearings, the facts are
in: Exelon’s takeover of PSEG does not meet the positive benefits
standard for consumers set by the NJ BPU and should be rejected,” said
Suzanne Leta, Energy Advocate with New Jersey Public Interest Research
Group. In briefs filed last week with the administrative law judge
reviewing the case, the New Jersey Public Advocate and the New Jersey
Board of Public Utilities (NJ BPU) staff concluded that the takeover
would cause serious, long-term harm to ratepayers. “It is time for
Governor Corzine to take a hard look at his agency staff’s findings,
and put his leadership behind the only decision that will truly protect
ratepayers -- the rejection of this takeover.”
“Over
a year ago, we joined with NJPIRG and Public Citizen to call for the
rejection of the takeover because we saw that the creation of an energy
super monopoly was bad for New Jersey ratepayers. Since then, over
7,000 citizens have joined our common sense decision by sending emails,
handwritten letters and making phone calls expressing their opposition
to this deal. Today, we are calling on Governor Corzine to use his
common sense as well,” said Atif Malik, Regional Organizer with New
Jersey Citizen Action.
On
Tuesday, PSEG CEO Jim Ferland stated that Exelon and PSEG expect to
reach a settlement agreement by the end of the month, saying, “We’re
reaching the end of that process…I expect by the time we get to the end
of this month, we should have sorted out what the outcome is going to
look like in the state.” Ferland’s comments echo a statement made last
week by PSEG spokesman Paul Rosengren who said, “We fully expect to
come to a settlement with the opposition, but we'll do it in small,
issue-specific groups behind closed doors.”
“Based
on Ferland’s recent statements, either Exelon and PSEG are blowing
smoke, or the companies’ leaders are privy to meetings with
decision-makers that the public is not. We hope it’s the former,
because so far, this process has proceeded in a public and transparent
manner,” said Leta. PSEG’s statement contradicts a dozen briefs from
opposing parties, including the NJ BPU staff, the New Jersey Public
Advocate, NJPIRG, New Jersey Citizen Action and the New Jersey Large
Energy Users Coalition, filed last week. The briefs repeatedly affirm
that the takeover does not meet New Jersey’s standard of review.
The
opposing parties are on opposite ends of the table from Exelon and PSEG
on a range of issues, but especially on market power and its impact on
electric rates in New Jersey. An expert hired by the BPU staff estimate
that because the merged company would have a stranglehold over
electricity generation in the region, the takeover could cost all New
Jersey ratepayers $2.3 billion annually and indefinitely. If this
amount was shared between residential ratepayers in the state, it would
be an increase of $45 a month. The same expert also stated that in
order to meet the positive benefits standard, the company would need to
give up ownership and control of 8-10,000 megawatts (about a dozen
mid-sized power plants) of electricity generation in the regional grid.
“A
super monopoly in the electricity market will do nothing to lower rates
which New Jersey manufacturers now are forced to pay, eroding our
manufacturing base,” said Hal Bozarth, Executive Director of the
Chemistry Council of New Jersey. New Jersey’s industrial electricity
rates are the 4th highest in the nation, fully 70 percent above the
national average, and rates across all sectors are 9th highest in the
nation, 38 percent above the national average. “We in the industrial
community hope that this administration will do what ever it can to
lower rates and increase competition. This takeover does neither.”
“This is the most important issue of this administration. We need
Governor Corzine to step up and protect ratepayers by opposing this
takeover. He needs to make an excellent decision, not an Exelon one,”
said Jeff Tittel, Director of the New Jersey chapter of the Sierra
Club.
“Any
statement asserting that the Exelon deal will be wrapped up in a bow by
the end of the month is baseless. There are too many fundamental
concerns that Exelon has not addressed. We can’t imagine a scenario
where this deal goes forward,” concluded Leta.
Additional Contacts
Atif Malik, New Jersey Citizen Action, 973-643-8800 or 908-930-0627 (cell) or Ev Liebman 856-966-3091 or 609-234-1741 (cell)
Hal Bozarth, Chemistry Council of New Jersey, 609-392-4214
Jeff Tittel, New Jersey chapter of the Sierra Club, 609-656-7612 or 609-558-9100
