NJ A5902

Directs the New Jersey Board of Public Utilities to collaborate with neighboring states to research alternatives to PJM Interconnection's capacity market, which saw prices increase nearly 10-fold in July 2024, raising consumer costs from $2.2 billion to $14.7 billion

Requires the board to explore requiring electric load serving entities to demonstrate they have contracted for at least 80% of capacity needed to serve their load on a bilateral basis for at least five years into the future

Mandates research into withdrawing from PJM's reliability pricing model and developing a multi-state compact to secure electric capacity through contracts, competitive auctions, or a combination

Includes option to explore withdrawing from PJM's regional transmission grid entirely and either establishing an independent grid or joining an existing grid in another state or region

Requires the board to submit a report with findings and recommendations to the Governor and Legislature by December 31, 2025