PSEG's Ralph Izzo Talks Climate Policy at NJIT

Ralph Izzo ’10 HON, chairman, president and CEO of PSEG, New Jersey’s largest energy provider, argued at a forum on campus this week that the country’s climate policies are ineffectual and, in some instances, even counterproductive.

“There is a lot of work to do, but we’re not moving in the right direction,” he told an audience of students and faculty at the Guttenberg Information Technology Center at a talk entitled, “Five Things to Tackle Climate Change.”

He said, for example, that the country - and New Jersey in particular - is failing to “maximize the value of environmental dollars,” including placing an emphasis on what he called expensive and unproductive state tax incentives for renewable energy. He cited solar power as a case in point, asserting that the majority of subsidized photovoltaic panels in the state sit on residential rooftops, where they harness a relatively small amount of energy.

Recent gains in carbon reduction – plants’ conversion from carbon-dense coal to natural gas following the shale gas boom – have already occurred, he noted. So what now?

Izzo’s “five things” are putting a price on carbon emissions, investing in renewable energy “in the best locations,” promoting energy efficiency, preserving nuclear energy and switching to electric vehicles.

In his talk, he advocated for pricing mechanisms that take into account the societal cost of carbon emissions on people and the planet, which policymakers could address by charging a fee per metric ton to incentivize cleaner plants.

Izzo, who is the chairman of the Nuclear Energy Institute, also argued in favor of preserving nuclear plants, which produce no carbon outside of their construction. “When we put a price on carbon, nukes are more efficient,” he said.

His remarks did not go entirely unchallenged, however, as audience members questioned his assertions about the value of public subsidies for renewable energy, while also noting that the fossil fuel industry receives them.

In introductory remarks, Provost Fadi Deek noted that “climate change and its impacts” are a growing focus of NJIT’s educational program and research.

Indeed, Izzo’s talk attracted a range of students, from engineers to architects.  

“I’m interested in environmental control systems and wanted to hear about energy efficiency,” said Tyler McCleary ’23, an architecture student.

His classmate, Laura Verano '23, agreed. "It's important to understand environmental control systems, not only in class, but in the real world," she noted.

The event also drew jobseekers. Following a tour of the NJIT Makerspace, PSEG managers and recruiters met with students interested in a future with what Izzo said should now be billed as “an energy infrastructure company.”