The New Jersey Board of Public Utilities approved a petition filed by Atlantic City Electric Co. that modifies power purchase and sales agreements between ACE and Chambers Cogeneration Ltd. and Logan Generating Co.—the last two coal-fired electricity generation units in the state, according to a March 23 announcement.
Under the agreements, coal-fired generation will end in the state after a brief transition period.
In a statement, Gov. Phil Murphy said the agreements “allow us to further shift New Jersey’s energy portfolio away from harmful coal generation and focus on clean energy technology.”
As part of the agreements, ACE will make a series of negotiated, fixed monthly payments for the remaining term of the existing PSAs (Power Sales Agreements) and PPAs (Power Purchase Agreements), which will be partly offset by payments to ACE customers from Logan and Chambers. ACE customers will save up to $30 million over the remaining term of the existing agreements, the statement said.
“The modified agreements are great news for the residents of New Jersey because at long last we are ending coal generation in our state,” NJBPU President Joseph Fiordaliso said in the statement. “A key goal of the Energy Master Plan is dramatically reducing greenhouse gas emissions and today’s action by the Board is a massive step in that direction.”
Fiordaliso added that this move “is only one piece of the larger clean energy puzzle that has been a cornerstone of the Administration’s efforts to combat climate change … We have taken tremendous strides towards meeting Gov. Murphy’s goals through our offshore wind, solar, energy efficiency and electric vehicle programs. We are full steam ahead because there is no time to waste.”
In January 2020, Murphy unveiled the state’s Energy Master Plan, outlining strategies to reach his administration’s goal of 100% clean energy by 2050. The governor has faced criticism in the past few months from environmental groups, the fossil fuel sector, and businesses and trade organizations alike over his environmental agenda.