Total Reliance On Private Corporate Wall Street Model Is Ill Advised
We are facing an existential crisis of accelerating climate emergency
We can not put the fate of human civilization in the hands of Wall Street and greedy corporations
“FDR did not rely on Wall Street corporate capital to finance the New Deal’s massive energy and infrastructure programs.”
Would you put your family’s life and future totally in the hands of an oil company?
Of course not.
So why would NJ Governor Murphy put control of a critical component of NJ’s renewable energy infrastructure and transition in the hands of Shell Oil?
That just seems like an incredibly foolish move – and it is proven by the fact that Shell Oil just pulled out of NJ’s off shore wind industry, see:
Days after Shell dropped out of the one existing project, the state Board of Public Utilities announced New Jersey will be scrapping its fourth offshore wind solicitation as the market faces serious challenges.
Our neighbors to the north in New York State recently realized that total reliance on private capital and market forces was ill advised and passed legislation calling for public power, see:
We’ve seen this Shell Oil driven train wreck coming for some time and appealed to legislators (December letter to NJ Senate Environment Committee Chair Bob Smith:
… last year, the NY Legislature passed and Gov. Hochul signed into law the Build Public Renewables Act (BPRA), a major bill that authorized the NY Power Authority to develop sufficient renewable power capacity to meet State mandated goals, when the private sector fails to do so.
In October 2024, the NYPA released NYPA their draft “Renewables Strategic Plan” to implement the BPRA and is now responding to public comments, see:
Given NJ’s less than optimal experience with almost total reliance on the private sector and market forces to meet State climate and energy goals (e.g. extensive setbacks and delays; high costs; and lack of consumer protections, transparency, accountability, and democratic public input; etc), I think we all can agree that the private sector has failed to meet those goals.
So now is the time to revisit and reassess the roles of the private sector and government, particularly with respect to government development of public power (as well as putting teeth in NJ’s “Global Warming Response Act” by asserting regulatory authority to compel compliance with State climate and energy goals, again as the NY Legislature did in passage of The Climate Leadership and Community Protection Act.
We’ve written on the need for public power, see:
Ironically, a recent Murphy NJ DEP Report on restructuring the City of Trenton’s drinking water system explicitly stated the major shortcomings of privatization of critical public infrastructure, including the high costs resulting from corporate profits and lack of democratic accountability, see:
Perhaps Governor Murphy – a former Wall Streeter at Goldman Sachs – and Legislators could read that Report and apply the concepts to NJ’s renewable energy infrastructure.
Not likely. But we try anyway, see today’s letter:
Dear Chairman Smith –
I was disturbed to learn of Shell’s cancellation of NJ off shore wind investments.
That move exposes why the Murphy’s Administration’s total reliance on private corporate capital investment to finance, own, construct, and operate the renewable energy transition is unsound energy and climate policy.
Perhaps worse, the Murphy Administration’s reliance on Shell Oil – a major fossil producer and polluter with gross conflicts of interest in competing fossil and renewable energy technologies – is incredibly ill advised.
FDR did not rely on Wall Street corporate capital to finance the New Deal’s massive energy and infrastructure programs.
To salvage NJ’s renewable energy transition, NJ policymakers must focus on PUBLIC POWER.
Along those lines, there are excellent policy proposals in the original version of the Green New Deal.
The Bernie Sanders Green New Deal plan calls for public power, in the form of redirecting and expanding the missions and jurisdiction of current federal Power Marketing Authorities (e.g. the TVA). (see attached excerpts).
That federal approach is not inconsistent with State’s taking the lead in forming public power banks and publicly controlled renewable power authorities.
We are facing an existential crisis as a result of the accelerating climate emergency –
We can not put the fate of human civilization in the hands of Wall Street and greedy corporations.
I urge you to hold legislative oversight hearings on how to create a public power renewable energy infrastructure in NJ.
Bill Wolfe