TRENTON, N.J. — New Jersey regulators are launching a sweeping review of how electric utilities operate and earn revenue as the state looks to address rising energy costs for consumers.
The New Jersey Board of Public Utilities will hold a public stakeholder meeting May 7 to begin examining potential changes to the state’s electric distribution company business model. The effort follows the board’s approval of an independent consultant to lead the study, a key directive under Gov. Mikie Sherrill’s Executive Order No. 1.
“This proceeding is one of the most consequential regulatory reviews New Jersey has taken on in a generation,” said NJBPU President Christine Guhl Sadovy. “It goes to the core question of how utilities should earn revenue in a modern energy system. As we examine new approaches, our priority is ensuring we balance reliability with affordability, and tie utility profits with performance for the benefit of New Jersey ratepayers.”
Officials said the study will take a data-driven approach to evaluating possible reforms, including performance-based ratemaking, multi-year rate plans and alternative methods for utility earnings and cost recovery.
The review comes as New Jersey residents, like customers nationwide, have faced increasing electricity costs in recent years.
If adopted, potential changes could alter long-standing regulatory practices, reduce reliance on capital-driven rate increases and help stabilize or lower customer bills over time, officials said.
The May 7 meeting will include presentations from board staff, the Regulatory Assistance Project and a panel of former utility commissioners from other states who have overseen similar reforms.
The session will also include public input and discussions on regulatory priorities and customer outcomes as the state evaluates its next steps.
The study is not expected to result in immediate rate changes but is intended to guide future policy decisions.
The meeting will be held at Mercer County Community College in West Windsor Township, with a virtual option available. Written public comments are due by May 29.
