The Grid Reliability Protection Act aims to safeguard New Jersey's electric generation facilities by prohibiting State agencies from mandating their retirement under specific conditions. According to the bill, a State agency cannot compel the deactivation of any electric generation facility connected to the state's electrical grid unless it receives written certification from PJM Interconnection that the deactivation will not adversely affect regional grid reliability, capacity adequacy, or energy market prices. Additionally, the Board of Public Utilities must conduct a public rate impact analysis confirming that the deactivation will not significantly increase costs for ratepayers.

The bill also outlines an exception for situations where a facility poses an immediate threat to public health or safety due to structural damage, mechanical failure, or hazardous conditions. Furthermore, it mandates that at least 12 months prior to any proposed deactivation, the facility's owner or operator must provide public notice and file a letter of intent with the Board, including the necessary certifications and analyses. This legislation reflects the Legislature's commitment to ensuring the reliability and adequacy of New Jersey's electrical grid amidst rising energy demands and the potential retirement of older generation resources.