New Jersey Legislation Pushes for Greater Transparency in PJM Decisions Amid Rising Power Costs

New Jersey Governor Phil Murphy signed into law two measures on Aug. 15 that aim to increase transparency and accountability in the operations of regional grid operator PJM Interconnection LLC, as households and businesses face mounting electricity costs. The legislation strengthens the role of the New Jersey Board of Public Utilities in examining PJM’s market practices and requires utilities to disclose how they vote on matters that affect electricity affordability, reliability, and clean energy goals.

The first measure, AJR216/SJR154, directs the Board of Public Utilities to investigate whether PJM’s Reliability Pricing Model is achieving its stated purpose of securing sufficient electricity resources at the lowest possible cost through its annual capacity market auction. The law also instructs the agency to continue coordinating with other PJM states to press for reforms that will expand supply, protect consumers, and accelerate clean energy generation. The board must report its findings to the Governor and Legislature within one year. New Jersey, along with other states, has actively filed comments with the Federal Energy Regulatory Commission and sent letters to PJM’s Board of Managers following the July 2024 auction, urging improvements to the market structure.

Secondly, A5463/S4363, increases transparency around how decisions at PJM are made by its members, including electric public utility companies. The law requires utilities and their affiliates operating in New Jersey to file annual reports with the board disclosing their recorded votes on PJM matters and explaining how those votes support the state’s priorities of affordability, reliability, and sustainability in electricity production and use.

Industry group Advanced Energy United applauded the move, noting that the legislation “brings long-overdue transparency to PJM and gives the public a tool to hold utilities accountable.”

State officials argue that PJM’s market rules have long shaped electricity costs and resource development across the region. With demand continuing to grow and grid-wide challenges influencing local prices, New Jersey is stepping up efforts to ensure PJM’s governance better reflects state policy objectives.