New Jersey Gov. Phil Murphy on Aug. 15 signed into law two bills designed to increase public accountability and transparency in decision-making by PJM Interconnection.
AJR216/SJR154 “cements New Jersey’s role on the forefront of coordinating with other PJM states to ensure PJM is serving ratepayers by utilizing a pricing model that serves the intended purpose of obtaining adequate resources at the lowest possible cost at its annual capacity market auction,” the governor’s office said.
The new law directs the New Jersey Board of Public Utilities (BPU) to examine whether PJM’s Reliability Pricing Model is advancing that goal.
BPU is also directed to continue advocating, along with other states, for reforms at PJM that will increase electricity supply, protect ratepayers, and prioritize clean energy generation.
Under the law, the BPU will report the results of the investigation to the Governor and the Legislature within one year.
New Jersey, alongside other states, has sent multiple letters to the PJM Board of Managers since PJM’s June 2024 capacity market auction and has made multiple filings with the Federal Energy Regulatory Commission on how to improve PJM’s capacity market rules.
“New Jersey continues the work to vigorously incentivize the development of new generation sources in-state to meet the growing electricity demand, which is influenced by regional grid-wide factors,” the governor’s office said.
PJM members, including electric utilities, vote on matters at PJM that impact ratepayers in New Jersey and across the regional grid.
A5463/S4363 “enhances transparency and accountability so that the public can understand how decisions made at PJM may impact electricity reliability, affordability, and sustainability – calling on electric public utilities and their affiliates operating in New Jersey to disclose details on their voting at PJM to the BPU annually. Under the law, those utilities and their affiliates will be required to report their recorded votes and explain how each vote furthers the State’s goals of prioritizing the affordability, reliability, and sustainability of electricity production, consumption, and conservation,” the governor’s office said.
