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S 4591

Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts

2025 Regular Session Introduced by Leroy Comrie and 3 co-sponsors

New Jersey electric utilities must obtain a Board of Public Utilities certificate before transmission projects, with a 150-day review and criteria on necessity, cost, and financing

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 4591

Summary of Senate Bill S 4591 (New Jersey)

Purpose and intent

S 4591 would require electric public utilities in New Jersey to obtain a certificate of public convenience and necessity (certificate) from the Board of Public Utilities (the Board) before undertaking specified transmission projects. The certificate process is designed to assess whether projects are necessary, cost-effective, reliably implemented, and financially viable, and to establish timelines for construction.

Key provisions

  • Definitions (Section 1):

    • “Board” = Board of Public Utilities.
    • “Certificate” = certificate of public convenience and necessity.
    • “Electric public utility” = a utility that transmits/distributes electricity within the state.
    • “PJM” = PJM Interconnection, L.L.C.
    • “Transmission project” = a project to construct a new transmission line or modify an existing one, excluding projects already deemed necessary/approved by PJM through a needs assessment.

  • Certificate application (Section 2):

    • Before starting a transmission project, an electric public utility must file an application for a certificate with the Board.
    • The application must include information the Board deems necessary and an application fee (amount to be determined by the Board).

  • Board use of fees (Section 2b):

    • The Board must decide how to use the application fees collected from utilities.

  • Confidential information (Section 2c):

    • Utilities may request confidential protection for information submitted, subject to Board approval.

  • Board review and decision (Section 3):

    • The Board must approve the certificate after notice and a hearing if it determines: 1) The project is necessary for adequate, reliable, and efficient service and is the least-cost option, or promotes a competitive market that is also least-cost. 2) The utility can efficiently manage and supervise construction. 3) The utility can finance the project without creating significant financial harm to the utility or customers.
    • The Board must issue an order no later than 150 days after a complete application; an extension of up to 75 days may be granted if it serves the public interest.

  • Order content (Section 3c):

    • The Board’s order must authorize the utility to construct the proposed project and set a manner/timeframe to complete it.

  • Rules and procedures (Section 4):

    • The Board must adopt rules under the Administrative Procedure Act to implement the act, including the application process and the fee amount.

  • Effective date (Section 5):

    • The act takes effect immediately.

Timeline and procedural notes

  • Introduced: June 5, 2025
  • Current status: Referred to Senate committees; subsequently reported and committed to Finance on May 28, 2025
  • Committee actions: Initially referred to Procurement and Contracts, then to Senate Economic Growth; sponsor information and companion bills listed below

Impact and who is affected

  • Affected entities: Electric public utilities in New Jersey proposing transmission projects not already approved by PJM through a needs assessment.
  • Potential effects:
    • Adds a formal NJ Board review step with transparent criteria to approve construction and set completion timelines.
    • Establishes a 150-day decision window, with potential extensions, potentially influencing project schedules and planning.
    • Introduces an application fee (set by the Board) and possible additional administrative costs.
    • Could influence project economics and financing, since the Board considers least-cost and financial viability.

Related information

  • Sponsors: Jeremy Cooney (primary), James Skoufis (cosponsor)
  • Companions: A 5465, A 7379
  • Related bill context: Focuses on transmission planning and Board approval processes within New Jersey’s regulatory framework.

This summary captures the bill’s core changes to transmission project approvals, the criteria the Board must apply, and the procedural timeline proposed for approving and commissioning projects.

Compiled from official sources — confirm details with the bill’s official record.

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