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's reliability pricing model and to explore the establishment of a multi-state compact for securing electric capacity through alternative means, including contracts with private entities or competitive capacity auctions. The BPU may also consider withdrawing from the PJM-operated high-voltage electric transmission grid to either create an independent grid or join an existing one in another state.

The bill highlights significant concerns regarding the PJM capacity market, including delays in energy generation due to interconnection process issues and rising capacity auction clearing prices, which 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 collaborative research with neighboring states. This legislative action aims to address the rising costs and lack of responsiveness from PJM to state energy policies, ultimately seeking to enhance grid reliability and affordability for New Jersey residents.