Memorials, Recognition - Ivy Academy, 2024 Charter Champion Award Community Impact Project of the Year -

114th Regular Session (2025-2026) Introduced by Bo Watson

NJ BPU must investigate PJM's RPM for reliability at the lowest cost within 12 months, and collaborate with PJM states to push market reforms that protect ratepayers.

Signed by Governor.

#memorials #recognition

Purpose and intent

SJR 154 directs state action to scrutinize PJM Interconnection, L.L.C. (PJM) and to foster regional efforts aimed at affordable, reliable energy. Specifically, it:
- Requires the Board of Public Utilities (BPU) to investigate PJM’s Reliability Pricing Model (RPM) to assess whether it delivers resource adequacy at the lowest possible cost.
- Directs New Jersey to collaborate with neighboring PJM states to promote affordable energy practices, reduce climate-related energy impacts, urge PJM to implement market reforms, and expeditiously review new electricity generation applications.

Key provisions

Investigation Mandate: The BPU must evaluate whether PJM’s RPM is functioning as intended to ensure reliability at lowest cost, and report findings to the Governor and Legislature within 12 months of the bill’s effective date.

Regional Collaboration: The State of New Jersey, through the BPU, will work with neighboring PJM jurisdictions to promote equitable practices, prioritize carbon-free energy sources, and reduce energy demand and costs associated with climate change. It will urge PJM to implement market reforms that protect ratepayers from rising capacity prices and to expeditiously review new generation proposals.

Transmission of Information: Copies of the resolution are to be transmitted to the BPU commissioners and to PJM Board of Managers.

Effective Date: The joint resolution takes effect immediately.

Affected parties

Board of Public Utilities (BPU) and New Jersey ratepayers (ratepayer protection goals)

PJM Interconnection, L.L.C. (RPM capacity market and interconnection processes)

Neighboring PJM states within PJM’s jurisdiction and electricity generators considering interconnection

Public and consumer advocacy groups participating in energy policy and regulatory reviews

Timeline and procedural notes

Introduced: February 20, 2025

Committee action: May 22, 2025 (Senate Economic Growth Committee reported favorably)

Legislative actions: Passed Senate (25-12) and Assembly (57-23-0); substituted for AJR216; reported to Governor

Enactment: Approved as P.L. 2025, JR-11 on August 15, 2025

Companion bill: AJR 216

Background and rationale

The resolution notes concerns about PJM’s RPM capacity market pricing, alignment with affordability and transparency principles, and delays in PJM’s interconnection queue that could hinder cost-effective, reliable new generation. It reflects ongoing regional efforts led by the BPU and consumer advocates to push for market reforms and protective actions for ratepayers, including engagement with FERC.

Potential impact

A formal, 12-month investigation by the BPU into RPM may yield findings that shape NJ’s regulatory posture and policy arguments in regional forums.

Increased inter-state collaboration could amplify pressure for PJM reforms and more efficient, timely interconnection reviews.

The measure signals ongoing state commitment to affordable energy while balancing reliability, climate goals, and ratepayer protections. It does not authorize funding and relies on regulatory and advocacy avenues to influence market reforms.

Bill