The New Jersey Energy Security & Affordability Act allows electric public utilities to own, develop, or operate strategic in-State energy resources, or enter into long-term contracts for such resources, under specific conditions. The bill defines "strategic in-State energy resource" as electric generation, storage, or hybrid resources that enhance reliability, reduce costs, and address public needs not met by current market mechanisms. It mandates that utilities conduct a competitive solicitation process to evaluate ownership and procurement options before submitting project proposals to the New Jersey Board of Public Utilities (board) for approval. The board must ensure that any approved project provides a net bill benefit to ratepayers and adheres to cost caps and performance standards.

The legislation aims to address rising electricity costs in New Jersey, which have been exacerbated by insufficient in-State generation capacity and increased reliance on out-of-State resources. By allowing utilities to develop in-State resources while maintaining oversight and protecting ratepayers, the bill seeks to improve energy security and affordability. The board is tasked with ongoing oversight of approved projects and must adopt necessary regulations to implement the act, including safeguards against market distortion and self-dealing by utilities.