This bill mandates that all transmission owners in New Jersey must become members of regional transmission organizations (RTOs) approved by the Federal Energy Regulatory Commission (FERC) and transfer operational control of their electric transmission facilities to these entities. The legislation emphasizes the importance of reliable electric transmission systems for the health, safety, and economic welfare of residents, particularly in light of the electricity affordability emergency declared by the Governor. It outlines that membership in RTOs is essential for regulatory certainty in transmission planning and to protect the state's investment in regional infrastructure.

Additionally, the bill includes provisions for the Board of Public Utilities to adopt necessary rules and regulations for implementation. The effective date of the act is set for January 1, 2027. The bill aims to enhance system reliability, minimize rate pancaking, and ensure that the governance of transmission entities remains independent from users, thereby promoting a competitive electric generation marketplace.