FERC has decided to reopen its decision to kill NJ’s attempt to become self-reliant in electricity. The NJ Legislature created an initiative to build three new combined cycle natural gas plants in the state. This project would add 2000 megawatts of generation capacity to the state. Here is a recent story on the situation.
PJM is fighting NJ tooth and nail, because these new plants would have long term power purchase agreements with NJ utilities, sidestepping the PJM cartel. PJM’s response is a gem:
The program was immediately challenged by power suppliers and PJM, arguing that it would disrupt the competitive marketplace. Advocates of the pilot pr[ogr]am said opponents sought to overturn the law merely because it would erode their profits, an argument that gained credence when a study projected capacity payments to those suppliers would fall by $2 billion.
PJM argues that NJ’s plan would “disrupt the competitive marketplace.” Yeah, right. The only thing the new gas plants would disrupt is the control that the big generators like AEP and FirstEnergy and Exelon have over PJM’s management.
NJ’s self-reliance is a serious threat to PJM’s cozy cartel and plans to build big new transmission lines to earn high profits at the expense of NJ rate payers, and all the rate payers in PJM.