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Bill

S 1673

Requires transmission owners to join regional transmission organizations approved by Federal Energy Regulatory Commission. **

2026-2027 Regular Session Introduced by Britnee Timberlake and 1 co-sponsor

Requires New Jersey transmission owners to join approved transmission entities and transfer control, aiming to reduce rate pancaking, boost reliability, and open markets.

Reported from Senate Committee with Amendments, 2nd Reading
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Bill Summary · S 1673

Summary of Bill S 1673 (Session 222, New Jersey)

Main purpose and intent

  • This bill seeks to reform ownership and control of electric transmission facilities in New Jersey. It requires transmission owners located in the state to join one or more approved transmission entities (regional transmission organizations or similar entities) and transfer control of their facilities to those entities.
  • The objective is to reduce rate pancaking, improve reliability, promote open competition in the electric market, and ensure non-discriminatory, efficient transmission access.

Key provisions and changes

  • Definitions (Section 1)
    • Clarifies terms: Affiliate, Electric public utility, Electric transmission facility, Rate pancaking, Transmission entity, Transmission owner, and User.
    • A transmission entity is an entity approved by the Federal Energy Regulatory Commission (FERC) to serve as a regional transmission organization, independent system operator, or functionally similar entity.
  • Prohibition on ownership unless joined to a transmission entity (Section 2a)
    • Beginning on the bill’s effective date, no transmission owner in New Jersey may own or control an electric transmission facility located in the state unless the owner is a member of and transfers control to one or more transmission entities that are operational and meet specified standards.
  • Performance standards for compliance (Section 2b)
    • A transmission owner is in compliance if each transmission entity of which the owner is a member meets all listed specifications:
    • The entity is approved by FERC.
    • The entity separates control of transmission facilities from control of generation facilities.
    • The entity, to the extent reasonably possible, adopts policies to minimize rate pancaking within New Jersey.
    • The entity improves service reliability in the state.
    • The entity advances an open and competitive electric generation marketplace, including eliminating barriers to market entry and preventing bottleneck control of transmission facilities used for retail electricity choice.
    • The entity is of sufficient scope or operates to substantially increase economical supply options for consumers.
    • The governance structure is independent of the end users of the transmission facilities; board members must not have affiliations with users that could unduly affect performance during their tenure.
    • The entity operates under policies promoting positive performance to meet consumer electricity needs.
    • The entity can maintain real-time reliability, provide non-discriminatory transmission access and necessary services, reduce system congestion, and address current or potential transmission constraints.
  • Administrative rulemaking (Section 3)
    • The New Jersey Board of Public Utilities (BPU) may adopt rules and regulations, under the Administrative Procedure Act, to implement the bill.
  • Effective date (Section 4)
    • The act takes effect immediately upon enactment.

Who/what is affected

  • Transmission owners located in New Jersey: They would be required to join one or more approved transmission entities and transfer control of their facilities accordingly.
  • Transmission entities: Must be operational and meet the specified criteria to qualify as compliant custodians of New Jersey’s transmission facilities.
  • Consumers and the market: Potential indirect impacts include reduced rate pancaking, enhanced reliability, and a more open, competitive generation market within the state.
  • Regulatory oversight: BPU would implement regulations to operationalize the act.

Procedural and timeline aspects

  • The bill emphasizes immediate applicability, with compliance contingent on joining/being part of compliant transmission entities.
  • It directs BPU to promulgate implementing regulations under the Administrative Procedure Act.
  • FERC approval is a prerequisite for the transmission entities’ qualification, making federal authorization a gating factor.

Notes on scope and context

  • The bill focuses on ownership/control structure rather than merely operation; it shifts toward an organizational model where independent, non-affiliated transmission entities manage state transmission facilities.
  • By conditionally requiring separation of transmission and generation facility control and emphasizing independence from end users, the bill aims to reduce potential conflicts of interest and improve market dynamics in New Jersey’s electric system.

sponsors: Sen. (co-sponsors) Britnee Timberlake, Andrew Zwicker.

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

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