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S 4519

Requires electric transmission owners to join transmission entities.

2024-2025 Regular Session Introduced by Britnee Timberlake and 1 co-sponsor

Requires New Jersey electric transmission owners to transfer operational control to FERC-approved independent transmission entities to promote reliability, open markets, and reduce

Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 4519

Summary — S 4519 (2025)

Status: Introduced Feb 6, 2025; passed the Senate (May 29, 2025); delivered to the Assembly and referred to Assembly committees. Reported out of the Senate Economic Growth Committee with committee amendments (June 12, 2025) and referred to the Senate Budget & Appropriations Committee. Primary sponsor: Sen. Jessica Ramos.

Purpose / Intent

S 4519 requires owners of electric transmission facilities located in New Jersey to place those facilities under the operational control of one or more independent, regional transmission entities (RTOs/ISOs or functionally similar entities approved by FERC). The bill is intended to promote independent transmission control, improve reliability, support competitive wholesale markets, and reduce duplicative transmission charges (“rate pancaking”).

Key provisions

  • Definitions: establishes terms including “transmission owner,” “transmission entity,” “electric transmission facility,” “rate pancaking,” “user,” and related terms.
  • Ownership/control prohibition: after the bill’s effective date, a transmission owner located in the State may not own or control an in‑State electric transmission facility unless the owner is a member of, and transfers operational control of that facility to, one or more transmission entities that are operational and meet specified requirements.
  • Transmission entity compliance criteria: each transmission entity of which a transmission owner is a member must, among other things:
    1. Be approved by the Federal Energy Regulatory Commission (FERC);
    2. Separate control of transmission from control of generation;
    3. Implement policies to minimize rate pancaking within New Jersey;
    4. Improve service reliability in New Jersey and maintain real‑time reliability;
    5. Promote an open, competitive generation marketplace and prevent bottleneck control that would impede retail choice;
    6. Be of sufficient scope to increase economical supply options;
    7. Have governance independent of transmission users (board members may not be affiliated with users during their tenure);
    8. Operate under policies promoting performance to meet consumers’ electricity needs;
    9. Ensure comparable, non‑discriminatory access, minimize congestion, and address constraints.
  • Regulatory implementation: authorizes the New Jersey Board of Public Utilities (BPU) to adopt rules under the Administrative Procedure Act to implement the act.
  • Effective date: immediate upon enactment.
  • Committee amendments: technical edits only.

Who is affected

  • Transmission owners and operators located in New Jersey (including electric public utilities that own transmission assets) — they would need to become members of, and transfer operational control to, qualifying transmission entities.
  • Wholesale market participants and “users” who buy/sell energy across transmission systems — potential changes to access, charges, and market rules.
  • Electricity consumers in New Jersey — potential benefits include reduced duplicate transmission charges, improved reliability, and expanded supply options; impacts on rates would depend on how transfers and RTO/ISO cost allocations are implemented.
  • BPU — authority and responsibility to promulgate implementing rules.

Implementation and procedural notes

  • The measure conditions continued ownership/control on membership and transfer of operational control to FERC‑approved transmission entities that meet the statutory criteria.
  • BPU rulemaking will be needed to effectuate details (e.g., timelines, transfer procedures, compliance verification).
  • Related legislation: companion A5437; prior-session S7096.

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

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