This bill mandates that electric transmission owners in New Jersey must join and transfer control of their electric transmission facilities to one or more approved transmission entities. Specifically, it prohibits any transmission owner from owning or controlling an electric transmission facility in the state unless they are a member of a transmission entity that meets specific criteria set forth in the legislation. These criteria include approval by the Federal Energy Regulatory Commission, separation of control between electric transmission and generation facilities, and the implementation of policies to minimize rate pancaking, among others.

Additionally, the bill outlines that the governance of these transmission entities must be independent of the users of the electric transmission facilities, ensuring that no board member has affiliations that could unduly influence the entity's performance. The Board of Public Utilities is granted the authority to adopt necessary rules and regulations for the implementation of this act, which is set to take effect immediately upon passage.