Gov. Murphy signs bills to boost transparency, accountability in PJM electricity decisions
TRENTON, N.J. – Gov. Phil Murphy on Friday signed into law two measures aimed at increasing transparency and accountability in how PJM Interconnection, the regional grid operator, makes decisions that affect electricity costs for millions of New Jersey residents.
The new laws – AJR216/SJR154 and A5463/S4363 – come as state officials and advocates continue to press PJM to address skyrocketing energy costs and backlogs in bringing new power projects online.
“These bills complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans’ skyrocketing electricity bills and a lack of new energy generation,” Murphy said. “We are committed to creating a system that is fairer and more transparent for customers and the states that represent them.”
The first measure directs the New Jersey Board of Public Utilities (BPU) to investigate whether PJM’s Reliability Pricing Model, used in annual capacity auctions, is meeting its goal of securing adequate resources at the lowest possible cost. The BPU must report back to the governor and Legislature within a year.
The second law requires electric utilities and their affiliates in New Jersey to disclose annually how they vote on PJM matters and explain how those votes support the state’s priorities of affordability, reliability, and clean energy development.
State regulators and lawmakers have criticized PJM’s opaque decision-making process and say reforms are overdue.
“Transparency is the first step toward accountability,” said BPU President Christine Guhl-Sadovy, noting that the recent dramatic spike in auction prices shows the status quo is hurting ratepayers while stalling energy projects.
Rate Counsel Director Brian Lipman said the law gives the public a chance to “look behind the curtain” of PJM’s decision-making. “This is a multistate problem and will require a multistate solution,” he said, pointing to the need for coordination across PJM’s 13-state footprint.
Lawmakers sponsoring the bills said the legislation ensures PJM’s votes and decisions, which affect nearly 65 million people across the region, are subject to public scrutiny.
“While electric bills skyrocket, PJM’s decision-makers have been setting our regional power grid policy in secret,” said Sen. Raj Mukherji. “That ends today. With the enactment of the grid transparency law, consequential votes and decisions will become public record. This is about sunlight, accountability, and putting consumers at the center of our energy policy.”
