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Nuke plants won't solve NJ power shortage

New reactors would offset half of deficit

By: David M. Zimmer
NorthJersey.com
USA Today Network - New Jersey

..... New Jersey is betting on nuclear power to help meet growing electricity demand. but even if every reactor envisioned under a new state law is built, it would cover only about half of the state's current shortfall.
..... Governor Mikie Sherrill's Power NJ Act signed on July 13, [2026] sets a target of at least 1,100 megawatts of new nuclear generation, roughly the output of a large reactor. But even if the full amount is approved and built, it would, generate enough electricity to offset only about 52% to55% of the state's current power shortfall, based on a NorthJersey.com analysis of state data.
..... The analysis provides one of the first measures of how far the state's headline unclear goal would go toward solving a problem Sherrill has made central to her energy agenda: New Jersey produces far less electricity than it uses. Even under the law's most optimist scenario, the state would have to import nearly half of the power needed to close the gap.
..... The law starts a competitive process for developers but does not guarantee that the full number will be approved or built.
..... If it were, the new reactors could generate between 8.7 million and 9.2 million megawatt-hours per year at the operating rate cited by the Sherill administration.
..... New Jersey's latest in-state generation gap was nearly twice that size.
..... A Department of Environmental Protection analysis updated in July [2026] put the gap at nearly 16.8 million megawatt-hours, equal to about 23% of retail electricity sales.
..... A NorthJersey.com analysis of the DEP figures found that the full nuclear target would cover about 52% to 55% of that amount.
..... The state analysis uses 2024, the latest year available. The U.S. Energy Information Administration, or EIA, said New Jersey power plants generated about 60.2 million megawatt-hours and electricity providers sold 73.5 million megawatt-hours to customers. Estimated transmission and distribution losses added to the difference.
..... The gap widened form about 14% in 2023 and was the state's largest percentage deficit since 2010.
..... the July [2026]update added the 2024 figures to a series that begins in 1990. New Jersey's deficit was at least 20% in 25 of those 35 years, the DEP found.

Why New Jersey relies on power generated elsewhere

..... The deficit does not mean the state lacked electricity or came close to widespread outages.
..... New Jersey is part of PJM Interconnection, a regional grid that moves electricity among the states, 12 others and the Distinct of Columbia. Power generated elsewhere covers the difference when New Jersey's plaints produce less than customers sue.
..... New Jersey does not need to eliminate that difference or produce all of tis electricity within its borders. the cost and availability of outside power, however, depend on conditions throughout the PJM region.
..... Sherrill has argued that adding more in-state supply would help lower electricity costs.
..... "For costs to come down, we newed more energy supply," she said in April. [2026]
..... Here first-day energy order called for more solar power and battery storage in the short term and new nuclear generation over the longer term.
..... In April, [2026] Sherrill signed a law removing what her administration described as a 50-year de facto moratorium on new nuclear plants. The previous permitting standard required an approved method for permanently disposing of radioactive waste, a condition developers could not meet because no such method has received federal approval.
..... The change allows the DEP to consider federally complaint methods for storing the waste. it did not approve a reactor, but removed a state permitting barrier that had prevented one form being considered.

How much nuclear power could NJ add?

..... New Jersey already receives a large share of tis in-state power from three nuclear reactors at the Salem and Hope Creek plants in Salem County. Together, they accounted for about 46% of the electricity generated in the state in 2024, EIA data shows.
..... The proposed 1,100 megawatts would be roughly comparable to the capacity on one of those existing larger reactors, although the law allows the target to be met with one large project or several smaller ones.
..... No site, developer or reactor design has been selected.
..... The comparison with New Jersey's power gap assumes that all 1,100 megawatts are built, the reactors operate at 90% of capacity and electricity demand remains near its 2024 level.
..... It also compares production over an entire year. It does not measure whether enough power would be available during the hours when demand is highest.

Who would pay for new nuclear power?

..... The amount of electricity produced would not determine whether a nuclear project lowers customers' bills. That would depend on the construction cost, the price negotiated with the developer and future prices in the regional market.
..... Before lawmakers completed the Power NJ Act, the state Division of Rate Counsel said it did not oppose nuclear power but questioned who should finance it.
..... Rate Counsel warned in May [2026] that an earlier version placed the long-term financial risk on customers, even though data centers are driving much of the expected growth in demand. The division said data center operators should help finance the new generation needed to serve them.
..... The final law allows state support for an approved project to continue for up to 40 years after commercial operation begins. It bars charges during construction, protects customers form cost overruns and requires federal financing and a net benefit to ratepayers.
..... Rate Counsel would review the proposals, and the process would include public comment periods and a hearing in any municipality selected to host a project.

NJ nuclear push comes as regional power supplies tighten

..... PJM officials released he results of the regional grid's latest capacity auction on July 14. [2026] The price reached the federally approved cap, but the system still finished 6,831 megawatts short of its reliability requirement after resources committed outside the auction were included.
..... Grid operator representatives have said the shortfall does not mean outages are imminent. It nonetheless leaves the regional system with smaller reserves and greater risk during extreme conditions.
..... On July 31, [2026] PJM officials field a proposal with the Federal Energy Regulatory Commission for a one-time procurement aimed at filling the 6,831-megawatt shortfall. They plan to begin the process September 30 [2026] and announce awards in December. [2026]
..... A second filing is scheduled for August 7. [2026] The proposal would allow service reductions during power shortages for new data centers and other large users that do not secure enough generation to meet their needs, PJM officials said.
..... Tom Rutigliano, a senior advocate at the Natural Resources Defense Council, said the service limits could help stabilize the grid, but the new procurement would not necessarily lower costumers' bills. he called for existing data centers to help pay for the additional power they need.
..... New Jersey's electricity production peaked in 2016 and has not returned to that level, the DEP said. The 2018 closure of the Oyster Creek nuclear power plant contributed to the decline.
..... In a July 27 [2026] letter to stakeholders, PJM's board of managers said large electricity users are projected to ad about 70 gigawatts capacity have retired since 2022.
..... Under the Power NJ Act, the state Board of Public Utilities must begin seeking expression of interest from nuclear developers by January 9, 2027. The state could issue a final approval by July 2028, but any project would still need federal livening, permits, financing and years of constructions.
..... The law does not set a deadline for a reactor to begin operating. until one does, New Jersey will continue covering its in-stat4e generation gap through the regional market.

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