This bill mandates the New Jersey Board of Public Utilities (BPU) to collaborate with neighboring states to research and recommend actions regarding electric capacity and transmission. Specifically, the BPU is tasked with ensuring that electric load serving entities in New Jersey demonstrate they have contracted for at least 80% of the capacity needed to serve their load on a bilateral basis for a minimum of five years. Additionally, the BPU is directed to consider withdrawing from the PJM Interconnection, L.L.C.'s capacity market and either develop a multi-state compact for securing electric capacity or establish an independent electric transmission grid.

The bill highlights significant concerns regarding PJM's capacity market, including delays in energy generation and rising costs for consumers, with recent auction prices soaring to unprecedented levels. The BPU is required to submit a report by December 31, 2025, detailing its findings and recommendations based on the collaborative research with neighboring states. This initiative aims to enhance grid reliability and affordability for New Jersey residents by exploring alternatives to the current capacity auction system managed by PJM.