New Jersey Enacts Power NJ Act to Procure 1,100 Megawatts of New Nuclear Capacity

New Jersey Governor Mikie Sherrill on July 13 signed the Power NJ Act, establishing a competitive procurement framework for at least 1,100-megawatt of new nuclear generation as the state works to meet rising electricity demand, strengthen grid reliability, and expand its supply of carbon-free power. The legislation directs the New Jersey Board of Public Utilities and the Economic Development Authority to jointly evaluate proposals through a transparent process that considers project costs, financing, environmental requirements, workforce readiness, and long-term benefits for consumers.

The legislation includes several safeguards intended to protect ratepayers from financial risk. Developers must secure federal financing before a project can receive final approval, while customers will not pay for construction costs or cost overruns. Regulators may only approve projects that provide a net benefit to ratepayers and demonstrate that costs are reasonable relative to expected customer bills. The measure also requires independent assessments by the New Jersey Division of Rate Counsel and provides for two public comment periods, along with a public hearing in any municipality where a proposed project would be located.

The procurement process will unfold in several stages through 2028. NJBPU must issue a request for expressions of interest within 180 days, after which developers will submit proposals detailing regulatory, environmental, financial, and workforce information. Qualified projects will advance to negotiations covering electricity pricing, project costs, and other commercial terms before regulators determine whether statutory requirements have been satisfied. Once a project begins commercial operations, electricity suppliers will purchase Reliable Capacity Credits at a negotiated fixed price instead of relying on more volatile wholesale capacity market prices.

The initiative builds on Governor Sherrill’s broader energy affordability agenda. Nuclear facilities currently provide more than 40 percent of New Jersey’s electricity and over 80 percent of its clean energy. The administration has also expanded community solar, approved additional solar and battery storage projects, awarded funding for large-scale clean energy investments, and introduced policies to address growing electricity demand from data centers while supporting long-term grid reliability and energy affordability.