A 3967 New Jersey General Assembly · 2026-2027 Regular Session

Requires BPU to work with neighboring states to research and recommend certain action concerning electric capacity and transmission.

This bill requires New Jersey's Board of Public Utilities (BPU) to collaborate with neighboring states to research alternatives to PJM Interconnection's capacity market system, which has caused record-high electricity costs for consumers. It directs the BPU to evaluate three specific options: requiring electric utilities to secure 80% of their future capacity through long-term contracts, withdrawing from PJM's market to create a new multi-state compact, or leaving PJM's transmission grid entirely. The BPU must submit a report by December 2025 with findings and recommendations, addressing concerns that PJM's current system has led to $14.7 billion in projected consumer costs for 2025/2026 - up from $2.2 billion previously. The bill directly affects New Jersey ratepayers and electric utilities by seeking to reduce electricity costs through regional grid policy changes.

Issues: ✓ Energy

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 13, 2026 Last action Mar 16, 2026

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What changed between versions

Introduced → Reprint · 3 edits

MINOR

The bill moved from its introduced version to a first reprint after being reported by the Assembly Telecommunications and Utilities Committee on March 16, 2026, with amendments. The most substantive changes are a shift from a fixed December 31, 2025 deadline to a flexible one-year window tied to the bill's effective date, and a narrowing of the PJM grid reference from 'operated or managed by PJM Interconnection, L.L.C.' to 'operated and managed by PJM.' The explanatory statement section was also removed.

TIMELINE

The deadline for the Board of Public Utilities to submit its report changed from a fixed date (December 31, 2025) to a flexible period of one year from the bill's effective date. This gives more time and avoids an expired deadline if the bill is not enacted before that date.

SCOPE

The description of the PJM transmission grid in subsection a(3) was narrowed from 'operated or managed by PJM Interconnection, L.L.C.' to 'operated and managed by PJM.' The change from 'or' to 'and' means both conditions must be met, potentially excluding grids that are only operated or only managed by PJM. The formal entity name 'Interconnection, L.L.C.' was also dropped.

TECHNICAL

The entire STATEMENT section at the end of the bill was removed. This section contained background context about PJM capacity auction price spikes (10x increase in 2024), $14.7 billion in consumer costs, and legislative findings justifying the bill's purpose.

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Full legislative history

Actions timeline

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Key actions

Committee

Mar 16, 2026

Committee

Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee

lower

Jan 13, 2026

Introduced

Introduced, Referred to Assembly Telecommunications and Utilities Committee

lower

2 primary · 2 co-sponsors