Erick Ford, President, New Jersey Energy Coalition

Erick Ford, president of the New Jersey Energy Coalition, sat down with Invest: to discuss the ongoing changes in the market and how they are impacting the energy sector. “Working with companies, sectors, and policymakers so that they understand the need for energy is important,” Ford said.

What market or internal changes over the past year have most impacted the New Jersey Energy Coalition, leading to shifts in your operations?

Price increases have been a challenge for the energy sector over the past five years. Companies are trying to figure out how to ensure affordability in New Jersey. It is important to recognize that energy and the economy are in a symbiotic relationship. We have a diverse energy system, with companies operating nuclear power plants, solar, wind, and natural gas. It has been a busy past couple of years. Some people think that this is because of data centers; however, I believe it is also the growth trajectory of the population. 

There is so much involved in the energy sector, and legislative changes have a huge impact on utilities. Understanding other states’ measures is also key. Pennsylvania is embracing data centers, which is leading to investment in the energy sector in that state. This creates jobs, more energy, and has resulted in them being a net exporter of energy. Local communities and businesses will benefit from the excess energy in the area. States that embrace these opportunities will benefit tremendously, but those who push away will get left behind. 

New Jersey is uniquely positioned between New York and Philadelphia. We have great utilities, energy companies, and labor organizations; however, it is important to think about the infrastructure that still needs to be built. When you compare New Jersey’s infrastructure to that of other states, I would say ours is superior in many ways because of how much we have invested in it. The energy sector is going to continue to thrive. Jobs will be created consistently, and wages will continue to be good. In Salem County, nuclear power plants have created an economic engine. These investments have a direct impact. 

How is the organization helping clients navigate ongoing uncertainty in New Jersey?

Uncertainty comes from the government. Every state is competing for government investment dollars. New Jersey ranks in the middle of the pack, if not a little better, when it comes to the investment community. Making sure that the return on equity is fair is important. Interest rates also play a key role. If you priced a project in 2019 but are still going through it today, inflation has increased significantly. You must get your numbers right and account for inflation fees. If the Federal Reserve brings down interest rates, that lowers the cost of projects. 

Working with companies, sectors, and policymakers so that they understand the need for energy is important. If you look at publicly traded companies, investors are looking for a return on equity. If one company has a better return on equity than another, that’s where that investor will go. New Jersey needs to be competitive in making sure that the investment community sees the opportunity to put their dollars here. Thomas Edison created the lightbulb, but J.P. Morgan put the money behind it. Still, without Thomas Edison, there would be no light bulb. The investment community must see these projects as viable. 

From a legislative perspective, you must know what bills are in the works and how investors view those impacts. Permits can be tedious in New Jersey, and other states have shorter processes. The permit process impacts every sector of the economy, and many would benefit from changes. 

How is NJEC facilitating discussion around balancing environmental priorities and the impact on energy from the Big Beautiful Bill?

New Jersey has a strong incentive program and has had a commitment to clean energy for decades. The bill has an impact on solar and wind, but hydrogen was left in. Wind and solar can be a bit of a balancing act because you have to capture, store, and dispatch it as needed. New Jersey’s commitment to clean energy is there; the question now is how much further we are willing to go, and whether we have the support to do so. 

When it comes to energy of all kinds, we are looking at where those opportunities lie and what in-state options we have. We’ve had to look at the Big Beautiful Bill and see what benefits there are. I mentioned hydrogen, but New Jersey offers its incentives as well. That can significantly bring down the cost of a project, cutting costs by nearly 60%, give or take. It is unclear how those incentives would be stacked, and you need to ask if the incentives are worth what they are doing. Thinking about the economic and real impact of what we are doing and building is highly important. When costs go up, vulnerable communities are impacted.

New Jersey recently passed legislation for advanced manufacturing credits that incorporates clean energy. This makes the state more competitive and increases opportunities. Educating policymakers in the state as to what’s happening and where the opportunities are is key. Advancements in technology are becoming quite impressive. Some systems turn natural gas, separate the molecules, take the hydrogen, and use that to make electricity. There is no burning involved. Zero emissions technology opens up many new opportunities, and many value chains need to be worked out. 

What opportunity does Oyster Creek and nuclear energy represent for New Jersey’s energy needs, and what has been the sentiment toward this resource?

Oyster Creek is a great opportunity for the next generation of advanced nuclear power. You will likely see four to five small reactors put there, which would be great. It could also be utilized to make other things, like hydrogen. This would be a new plant, and the technology out there is amazing. Technologies for this are being worked on across the country, some in Canada, some of which include smaller microreactive parts. Nano nuclear energy is evolving, and it has been interesting to see what they have been able to do. There is so much going on, and New Jersey is working to position itself to be a hub for that action. 

Looking ahead to the next three to five years, what is your outlook for New Jersey’s energy landscape and for NJEC’s role in shaping that future?

Working with state policymakers, legislators, and regulators is important, but making sure that our state is competitive is the most important factor. We are focused on training our workforce and expanding the opportunities for the next generations, as well as attracting and keeping talent. Utilizing every opportunity that the state provides for the sector is key in remaining competitive.