N.J. utility oversight board prepares for future as its chief prepares his exit

A wind power project to rise in waters off Atlantic City could become the first on the East Coast and, advocates say, give New Jersey the chance to lead the nation in offshore wind and the production of wind turbines.

But the hotly debated proposal, introduced six years ago and now under final review by the state Board of Public Utilities, may face a new obstacle. BPU president Robert Hanna, who is presiding officer on that case, was this month nominated as a Superior Court judge and could be confirmed before any decision is made on the pilot-project wind farm.

His departure would leave the BPU with four commissioners, which is enough to schedule a vote but could also force a delay. It has left participants in that and other BPU cases to speculate over a possible replacement, and what effect that person may have on pending cases before the board.

The stakes are high, said Chris Wissemann, CEO of Fishermen’s Energy, which is proposing the five-turbine wind farm. If the project is approved, the group hopes to eventually build a much larger wind farm in the same area but farther out in federal waters.

“With President Hanna’s departure we would expect some delays to give time for his successor to get up to speed and be part of making an informed, balanced decision,” Wissemann said. “We hope that Hanna’s successor will encourage discussions to negotiate a settlement that unequivocally delivers the promised benefits to New Jersey.”

Each case the board hears is assigned a presiding officer, a commissioner who is tasked with managing the proceeding by setting schedules and ruling on motions without consent from the rest of the board. Because the wind farm case is approaching a final full board vote, it was not clear whether that duty would get reassigned to another commissioner.

Gov. Chris Christie likely won’t nominate another BPU commissioner until his selection of Hanna to the Superior Court is confirmed. The state Senate judiciary committee has yet to schedule a confirmation hearing. In December 2012, the governor chose Hanna and another nominee to fill two state Supreme Court seats. Democratic senators successfully blocked both choices, fearing they would create partisan imbalance.

Fishermen's Energy, which is hoping to build a five-turbine wind farm off the coast of Atlantic City, said Hanna's planned departure may further delay a BPU vote on the project.

Hanna, a registered independent with ties to the governor, is not expected to face the same roadblock for the lower court.

Besides the Fishermen’s Energy wind farm project — which like solar installations would be heavily subsidized — the BPU is considering several other major filings. Two of the biggest requests are a $3.9 billion grid-hardening project from Public Service Electric & Gas and a $630 million storm-related reimbursement filing from Jersey Central Power & Light.

Both proposals have garnered support, along with strong opposition from interest groups that believe the massive costs — which would get passed on to ratepayers — require more scrutiny.

Among those opponents is AARP New Jersey. While PSE&G’s case before the board is nearing its conclusion, Evelyn Liebman, associate state director for advocacy, said “nothing should be rushed or decided in haste.” A decision on the project, called “Energy Strong,” may come in March, and Liebman didn’t know whether the BPU leadership change would push back that timeline. “But if it means a case might take a little longer because a new president or commissioner comes on board and needs to get up to speed, so be it,” she said.

But BPU spokesman Greg Reinert said, "typically, prior transitions have not caused delays on matters before the board."

Hanna joined the BPU two years ago, replacing Lee Solomon as president. Solomon is now a Superior Court judge.

As governor, Christie has filled several key posts in his administration with people who worked for him when he was U.S. Attorney for New Jersey. Both Solomon and Hanna served under Christies as federal prosecutors, and there is speculation the governor may make a similar selection this time around.

Names that continue to surface as possible successors include Bob Martin, who is commissioner of the state Department of Environmental Protection and BPU chief counsel Tricia Caliguire. Neither worked at the U.S. Attorney’s Office.

A BPU spokesman said he would not comment, and a DEP official said Martin does not plan to leave the agency.

Doug O’Malley, director of Environment New Jersey, criticized the BPU and Hanna for “dragging its feet on offshore wind. I would be optimistic that a new BPU president would make this a priority, but I worry that this isn’t just a BPU decision. Gov. Christie is clearly the one calling the shots and nothing is happening. My fear is that the new boss will be the same as the old boss.”

In July, the BPU sent back the wind farm plan for further revision, saying as proposed it would leave taxpayers on the hook for too much money should anticipated federal grants fall through.

But Elvin Montero, a spokesman for the Chemistry Council of New Jersey, said he believes Hanna has “focused on affordability and was looking out for the ratepayer.”

Montero, whose trade association represents 75 manufacturers in the Garden State, said Hanna hasn’t been afraid “to take on the utilities. It’s important that the next BPU commissioner be someone who is knowledgeable about the process and who respects and encourages transparency.”