Trenton, NJ – New Jersey Gov. Phil Murphy signed two bills Thursday aimed at tightening the leash on regional power grid operator PJM Interconnection amid growing public anger over surging electricity costs.
The laws target transparency and voting practices at PJM, which sets power pricing rules affecting 65 million people across 13 states and D.C.
Despite the new laws, officials confirmed that ratepayers should not expect an immediate change in monthly utility bills.
Murphy signed AJR216/SJR154 and A5463/S4363 to force greater public disclosure from PJM and its member utilities as part of a larger effort to rein in costs and push forward clean energy goals. The legislation orders the New Jersey Board of Public Utilities (BPU) to investigate whether PJM’s capacity pricing system is delivering value to ratepayers — and whether it supports affordable, reliable, and sustainable power.
The move comes after a sharp increase in capacity auction prices in 2024, which state officials say is driving up residential and business energy costs. The BPU will be required to report its findings to the governor and legislature within one year.
PJM’s annual capacity auction is the primary mechanism used to ensure enough power supply is available to meet future demand. But lawmakers argue the auction’s current structure is not serving its intended purpose, with more than 1,000 clean energy projects stalled in PJM’s approval process.
Under the new law, electric utility companies and their affiliates will now be required to submit annual reports to the BPU disclosing their recorded votes on PJM matters and explaining how those decisions support New Jersey’s public energy goals.
Supporters say the law is the first step toward unraveling the secrecy of PJM’s decision-making process, which critics claim has long favored parent utility corporations over the interests of ratepayers.
Although the legislation targets PJM’s influence and practices, officials cautioned that broader regional and federal coordination is necessary to implement long-term reforms that would actually lower utility prices for residents.
While Democrats are trying to sway the blame from themselves to Republicans ahead of the 2025 gubernatorial elections, energy bills have been spiking since Murphy took office and announced his clean energy agenda.
That agenda has been plagued by failures in the offshore wind industry and for failing to replace energy plants taken offline during the period with any form of reliable and abundant energy alternatives.
