Can Christie cut from the Clean Energy Fund alone?

by: Jason Springer

Thu Feb 18, 2010 at 11:45:00 AM EST

Governor Christie is already learning that he can't completely govern by Executive Order and does need the Legislature to at least approve some of his actions. But I'm wondering if he's overstepped with his proposal to cut $158 million from the Clean Energy Fund. The Clean Energy Fund was established through the Societal Benefits Charge:

Utilities historically included in their rates funding for programs that provide societal benefits such as low income programs, nuclear decommissioning, and funding for energy efficiency and renewable energy programs. New Jersey's 1999 electric utility restructuring legislation (EDECA) authorized the Board of Public Utilities to permit utilities to continue collecting funds for these types of programs in a restructured utility market through a "societal benefits charge" (SBC).

The Societal benefits charge goes to six places including Social programs, Nuclear plant decommissioning, the Universal Service Fund, which provides for social programs such as the Lifeline Program and Low Income Home Energy Assistance Program, Remediation of manufactured gas plant sites, Consumer education and New Jersey's Clean Energy Program. That 1999 law specifically spells out the details of the societal benefits charge in Section 12:

Simultaneously with the starting date for the implementation of retail choice as determined by the board pursuant to subsection a. of section 5 of this act, the board shall permit each electric public utility and gas public utility to recover some or all of the following costs through a societal benefits charge that shall be collected as a non-bypassable charge imposed on all electric public utility customers and gas public utility customers.

Every ratepayer has to contribute to the fund through their payments. Not only do they say the fund has to be created at the same time and everyone has to pay into it, but then they spell out who controls it and here's a hint, it's not the Governor:

There is established in the Board of Public Utilities a nonlapsing fund to be known as the "Universal Service Fund." The board shall determine: the level of funding and the appropriate administration of the fund; the purposes and programs to be funded with monies from the fund; which social programs shall be provided by an electric public utility as part of the provision of its regulated services which provide a public benefit

That seems pretty clear that it's not the Governor, but the BPU that would have to make the decision. But even if they made the decision, I don't think the monies can be used to transfer into the general fund, because they are collected and dedicated for the Universal Service Fund. The Board decided give it to the Clean Energy Program. And it's not even a question of partisan politics, because the law was passed by the Republican Legislature and signed by Governor Whitman. Just like he's had to pull back on his power toward transferring other funds after freezing, Christie may need to re-evaluate here. If he wants to do it, it appears he's going to need legislative approval.

Jason Springer :: Can Christie cut from the Clean Energy Fund alone?