New Jersey is moving rapidly to a system of competition in the provision of electricity and natural gas. However, absent public policy initiatives, markets may not recognize the external environmental costs associated with electricity production and consumption. Some electricity sellers may seek to reduce all discretionary costs associated with environmental protection, to the detriment of the environment. Similarly, some retail suppliers may also seek to encourage the consumption of electricity in order to increase their revenues. Nonetheless, the Act recognizes that, not only do we need energy efficiency programs, but that the development of renewable energy resources is critical to the welfare of this state.
Renewable energy can decrease environmental impacts from traditional electricity production.
At the same time, it can increase the diversity and reliability of the supply of electricity to the state. This is especially significant in an era of increased power demands such as New Jersey experienced this past summer and will offset increasing stresses on our electric system in the years to come. Therefore, as the Board recognizes, it must adopt policies that mandate that competitive markets be structured to ensure the delivery of renewable energy as an integral part of electricity services. We recommend, that the funding dedicated to renewables should be placed in a renewable energy trust fund, where it would be available and would continue to be available, once the renewable programs are all in place. This is an important point, for the utilities propose that the renewable programs be placed under their control, as the DSM programs were.