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Bill

Bill

A 2757

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

2026-2027 Regular Session Introduced by Clinton Calabrese and 4 co-sponsors

Requires New Jersey transmission facilities to be owned/controlled by FERC-approved independent transmission entities to reduce rate pancaking and improve reliability and market op

Approved P.L.2026, c.33.
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Bill Summary · A 2757

Summary of Bill A-2757 (Session 222, New Jersey)

Purpose and intent

  • The bill seeks to reform ownership and control of electric transmission facilities located in New Jersey.
  • It requires that transmission owners join and transfer control of their facilities to one or more transmission entities that are operational and meet defined specifications.
  • The overarching goal is to reduce rate pancaking, improve reliability, promote open and competitive electricity markets, and ensure independent governance of transmission facilities.

Key provisions and changes

  • Definitions (Section 1):

    • Clarifies terms used in the bill, including:
    • 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 (RTO), independent system operator (ISO), or functionally similar entity.

  • Prohibition on ownership by transmission owners (Section 2a):

    • After the bill’s effective date, no transmission owner may own or control an electric transmission facility located in New Jersey unless that transmission owner is a member of, and transfers control of those facilities to, one or more compliant transmission entities.

  • Compliance criteria for transmission entities (Section 2b):

    • To be compliant, a transmission entity must meet all of the following:
    • Be approved by FERC.
    • Separate control of transmission facilities from control of generation facilities.
    • Implement policies to minimize rate pancaking to the extent reasonably possible.
    • Improve service reliability within New Jersey.
    • Promote an open and competitive electric generation market, removing barriers to market entry and preventing bottleneck transmission control in retail choice.
    • Have sufficient scope or operation to increase economical supply options for consumers.
    • Maintain an independent governance structure, with no board member affiliated with a transmission facility user during their tenure to avoid undue influence.
    • Operate under policies that promote positive performance to meet customers’ electricity requirements.
    • Ensure real-time reliability, nondiscriminatory transmission access and services, minimize congestion, and address current or potential transmission constraints.

  • Regulatory authority (Section 3):

    • The New Jersey Board of Public Utilities (BPU) may adopt rules and regulations as necessary to implement the bill, using the Administrative Procedure Act process.

  • Effective date (Section 4):

    • The act takes effect immediately upon enactment.

Who would be affected

  • Transmission owners located in New Jersey (e.g., electric public utilities and other entities that own or operate transmission facilities) would be directly impacted.
  • Transmission facilities in the state would be subject to transfer to eligible transmission entities and would no longer be controllable by the original transmission owners.
  • Transmission entities (as defined and approved by FERC) would become the controlling entities of the transmission facilities, provided they meet the specified criteria.
  • Consumers and customers could experience changes in transmission governance, potential reductions in rate pancaking, improved reliability, and access to a broader set of supply options.

Procedural and timeline aspects

  • Legislative process:
    • Introduced January 13, 2026; reported out of Assembly Telecommunications and Utilities Committee; amendments added; further action noted in June 2026.
  • Regulatory implementation:
    • BPU to craft rules and regulations necessary to implement the act through standard administrative rulemaking.
  • Effective date:
    • Immediate upon enactment (i.e., would take effect right away if signed into law).

Potential impact and considerations

  • Could reduce duplication of transmission charges (rate pancaking) by consolidating control under FERC-approved transmission entities.
  • Aims to enhance transparency and independence in transmission governance, potentially insulating transmission decisions from generation-side interests.
  • May affect investment and ownership dynamics for utilities and affiliated entities operating in New Jersey.
  • Real-time reliability and non-discriminatory access provisions are emphasized, potentially improving service quality and market access for electricity providers and customers.

If you’d like, I can compare this bill to existing federal/state structures (e.g., RTO/ISO frameworks) or map out potential implementation timelines with hypothetical regulatory milestones.

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

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