NJ S746

New Jersey Board of Public Utilities 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.

The board must evaluate requiring electric load serving entities to secure at least 80% of their capacity needs through bilateral contracts for a minimum of five years into the future.

Research must include options for withdrawing from PJM's reliability pricing model and establishing a multi-state compact using the fixed resource requirement alternative to procure capacity through private contracts or competitive auctions.

The board must also study the feasibility of withdrawing entirely from PJM's regional transmission grid to either establish an independent grid or join an existing grid in another state or region.

A report with findings and recommendations is due to the Governor and Legislature by December 31, 2025.