June 13, 2012
TRENTON, NJ— Solar energy legislation approved last week by the New Jersey Assembly Telecommunications and Utilities Committee will result in solar electricity costs of $337 million to $435 million annually, increasing consumer costs by 5.5 percent to 7.1 percent, or $3.84 to $4.97 per megawatt-hour, beginning June 1, 2013.
With an anticipated June 21 vote by the full Assembly on the pending bill, the Retail Energy Supply Association (RESA) is renewing its call for important amendments to ensure all electricity consumers in the state are treated equitably.
“Customers of competitive retail suppliers are singled out for unfair treatment by being immediately subject to the higher solar energy costs. In contrast, customers who remain with the utility are largely shielded from the increased compliance cost,” said Jay Kooper, Director of Regulatory Affairs of Hess Corporation and RESA’s New Jersey state chair.
“RESA supports New Jersey’s efforts to promote renewable energy and many of our members offer a variety of renewable energy products and services to customers,” Kooper continued. “We urge all New Jersey policymakers – the Christie Administration, Assembly and Senate to improve this legislation to make certain it treats all customers fairly and equitably without harming New Jersey’s competitive retail electric market.”
The measure (A-2966) will nearly triple the amount of Solar Renewable Energy Credits (SRECs) that wholesale and retail electric suppliers are required to purchase, resulting in increased costs that will be passed on to New Jersey electricity consumers. The New Jersey Senate passed similar legislation (S-1925) on May 31.
SRECs represent a specific amount of solar-generated electricity and are bought and sold to help electricity providers meet the state’s solar energy requirements. The legislation increasing the SREC requirement is intended to maintain New Jersey’s leading position as a solar energy producing state.
RESA represents competitive energy suppliers dedicated to creating and sustaining vibrantly competitive electricity and natural gas markets for the benefit of consumers. RESA’s members include: Champion Energy Services, LLC; ConEdison Solutions; Constellation NewEnergy, Inc.; Direct Energy Services, LLC; Energetix, Inc.; Energy Plus Holdings LLC; Exelon Energy Company; GDF SUEZ Energy Resources NA, Inc.; Green Mountain Energy Company; Hess Corporation; Integrys Energy Services, Inc.; Just Energy; Liberty Power; MC Squared Energy Services, LLC; Mint Energy, LLC; NextEra Energy Services; Noble Americas Energy Solutions LLC; PPL EnergyPlus, LLC; Reliant; Stream Energy; TransCanada Power Marketing Ltd. and TriEagle Energy, L.P.. For more information about RESA please contact Tracy McCormick, Executive Director at (717) 566-5405.