NJ A3967

New Jersey Board of Public Utilities (BPU) must collaborate with neighboring states to research alternatives to PJM Interconnection's capacity market, which saw auction clearing prices increase nearly 10-fold in July 2024, raising consumer costs from $2.2 billion to $14.7 billion for the 2025/2026 delivery year.

BPU must evaluate three options: requiring electric load serving entities to contract for at least 80% of capacity needs bilaterally for five years; withdrawing from PJM's reliability pricing model to form a multi-state compact; or leaving PJM's transmission grid entirely to establish an independent grid or join another regional grid.

BPU must submit a report with findings and recommendations to the Governor and Legislature by December 31, 2025.

The bill responds to concerns that PJM's interconnection backlogs delay new energy generation, reduce competition, and produce auction prices that don't reflect actual supply and demand.

The legislation takes effect immediately and authorizes BPU to take anticipatory administrative action for implementation.