Citizens Action Groups File Litigation In NJ Appeals Court Citing State’s BPU Exceeded Its Statutory Authority, Violated Ratepayers Rights

Two citizens action groups filed a brief on January 2, 2025, in support of the Appeal of the New Jersey Board of Public Utilities ( “NJBPU”) Third Round award for Offshore Wind Renewable Energy Certificates (ORECs) to Attentive Energy Wind LLC (“Attentive”) and Invenergy Offshore Wind LLC. The litigation was filed by Attorney Bruce Afran, Princeton, NJ representing Defend Brigantine Beach NJ.org and Protect Our Coast NJ.org.  The legal action represents a fundamental challenge to the NJBPU’s ability to subsidize an entire new electric generation industry on the backs of  New Jersey ratepayers. 

 

The brief states that the NJBPU exceeded its statutory authority by failing to limit its cost-benefit analysis to only the State of New Jersey and only relying on worldwide impacts rather than a state-based analysis.  In addition, using an analysis provided by The Levitan Group, the Board arbitrarily accepted, without explanation, a cost-benefit analysis that used discount factors that understated the costs and overstated the benefits  of the Attentive and Invenergy Offshore Wind projects. As a result BPU violated the law in concluding that benefits of the projects outweighed costs to NJ ratepayers.

 

On  January  10,  2024,  the  NJBPU’s  independent  consultants,  Levitan  & Associates issued their report and recommendations.  Without  debate,  discussion  or  any  witness  from Levitan,  the NJBPU  unanimously  accepted  the Attentive  and  Invenergy  proposals.  Fourteen days later, on January 24, 2024, the NJBPU approved OREC awards and  contracts  for  Invenergy Wind  LLC  and Attentive  Energy  LLC  for  two  power projects in the N.Y. Bight, a region in the Atlantic Ocean off the New Jersey coast and issued two written decisions and orders.  

 

The New Jersey Rate  Counsel  submitted  two  opinion  letters  on  the Attentive  and  Invenergy proposals,  but  the  letters  were  completely  blacked  out  pursuant  to  the  NJBPU’s practice   of   keeping   all   information   from   the   proposed   wind   developers confidential and hidden from public ratepayer review.  Due Process and the Administrative Procedure Act were violated by NJBPU’s failure to accept public comment following the issuance of the Levitan Report. The  inability  of  the  public  and experts, such as plaintiffs’ expert Whitestrand Consulting LLC, to comment on the Levitan Report prior to the Board’s vote is among the grounds for the asserted Due Process violations.

 

“NJBPU illegally delegated its decision-making powers to a private consultant, The Levitan Group, and failed to engage in and independent adjudication and fact-finding as to the OREC awards and their associated ratepayer impacts,” stated Bruce Afran, Attorney for the Plaintiffs. “BPU’s findings must be vacated because the NJBPU arbitrarily accepted, without explanation, a cost-benefit analysis that used discount factors that understate the costs and overstate the benefits of the Attentive and Invenergy projects,” he said.

 

In addition, the BPU failed to include in its analysis of ratepayer subsidies the added cost of inflation adjustment which can automatically increase OREC prices by up to 15%, putting even more burden on the ratepayer. “It is clear to us that the NJBPU failed to act as an independent agency in adjudicating the awards to Attentive Energy and Invenergy and, instead, acted as an advocate for Governor Murphy’s  political agenda of pursuing offshore wind energy no matter what the cost”, stated Keith Moore, Head of Government Affairs for Defend Brigantine Beach, NJ.org

 

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