This bill mandates the New Jersey Board of Public Utilities (BPU) to collaborate with neighboring states to investigate and propose collective 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 form a multi-state compact to secure electric capacity through alternative means or establish an independent electric transmission grid.

The bill highlights significant concerns regarding PJM's capacity market, including delays in energy generation due to interconnection process issues and rising capacity auction prices that have dramatically increased costs for consumers. The BPU is required to submit a report by December 31, 2025, detailing its findings and recommendations based on the research conducted in collaboration with neighboring states. This initiative aims to enhance grid reliability and affordability for New Jersey residents by exploring alternatives to the current PJM capacity auction system.