New Jersey Gov. Mikie Sherrill on July 13 signed the Power NJ Act, launching the state’s procurement process for new nuclear energy.
The new law will establish a transparent, competitive process by the New Jersey BPU and New Jersey Economic Development Authority to evaluate proposals and ensure any project is the best investment for New Jersey ratepayers, the governor's office said.
The bill passed both houses of the Legislature unanimously with strong bipartisan support.
"Additionally, the bill sets strong safeguards for ratepayers – including assuring that they won’t bear any costs until a project is built and supplying energy, nor be responsible for cost overruns," the governor's office said.
The governor's office said other safeguards include:
• Requiring projects to secure federal financing, shifting the risk away from New Jersey ratepayers;
• Requiring any project provide a net benefit to ratepayers;
• Requiring at least two separate public comment periods and a public hearing in any proposed municipality;
• Requiring NJBPU and NJEDA to take into account independent assessments by the Division of Rate Counsel to ensure ratepayers’ interests remain central at every step.
Additional details on the Power NJ Act are as follows:
- The bill creates a competitive framework, administered jointly by NJBPU and the NJEDA, for the State to procure at least 1,100 MW of new nuclear generation.
- Within 180 days (by January 9, 2027) – NJBPU opens request for expressions of interest. Developers have 60 days to submit proposals with regulatory, environmental, financial, and workforce information.
- Next 90 days (by April 9, 2027) – Provisional qualifications. NJBPU qualifies projects to enter the negotiation period or denies them.
- Next 12 months (by April 9, 2028) - Negotiations and stipulations. NJBPU and NJEDA negotiate with project entities including setting accurate cost estimates, price of electricity, and other terms.
- Next 90 days (before July 8, 2028) - NJBPU issues Final Board Order if project provides a net benefit to ratepayers, costs are not unreasonable or excessive in light of customers’ overall bills, and the developer has secured federal financing.
- Ratepayers pay nothing during construction. Once the plant is delivering power, suppliers purchase Reliable Capacity Credits (RCCs) at a fixed negotiated price, instead of volatile market prices.
Nuclear energy currently provides over 40 percent of the state’s total energy and represents over 80 percent of the state’s clean energy supply.
Sherrill in April lifted New Jersey's 50-year moratorium on new nuclear development.
