Governor Signs Bills Increasing Accountability of Grid Operator PJM to Customers

On Aug 15, 2025

Gov. Phil Murphy today signed into law AJR216/SJR154 and A5463/S4363, two bills designed to increase public accountability and transparency in decision-making by regional grid operator PJM Interconnection, LLC and its members.

“These bills complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans’ skyrocketing electricity bills and a lack of new energy generation,” said the governor. “We are committed to creating a system that is fairer and more transparent for customers and the states that represent them – a necessary change from the opaque practices that have, for too long, defined PJM.”

With New Jersey residents and businesses facing up to 20% cost increases on the monthly electric bill, a blame game has started on who is responsible for the price escalation.

While the Murphy administration and state Democrats are blaming PJM for the way basic generation service costs are structured, as well as auction rules that exclude generation capacity from being sold, Republicans are blaming the “failed energy policies” of the Murphy administration, which saw a great emphasis on offshore wind that never materialized.

Ray Cantor, deputy chief of government affairs, New Jersey Business & Industry Association, recently said the easiest way to observe where the true reason for blame resides in warnings issued by nonpartisan groups like NJBIA when the Energy Master Plan was announced in 2019.

“The rate increases and sticker shock in our electric bills resulting from New Jersey going from a net exporter of energy to a net importer of energy is something we and others predicted six years ago,” he said.

“Those criticisms of PJM are not without some merit,” Cantor continued. “You can also look at the speed of which interconnection approvals are made by the Federal Energy Regulatory Commissions as a contributing factor.

“However, they are not the major thrust beyond the bill increases we are seeing this summer. New Jersey right now is a state that doesn’t produce enough energy to keep our own lights on, and we have advanced policies to eliminate sources that provide much of our electricity.”

Jeffrey Shields, senior manager, external communications, strategic and stakeholder communications at PJM Interconnection, commented, “We understand the political motive to shift blame for high electricity bills, but the fact remains: PJM operates as a not-for-profit that plans the power grid and administers federally regulated wholesale electricity markets. Pointing fingers will not solve the supply-and-demand realities driving higher prices for consumers in New Jersey, including challenges that stem from failed policies. Our focus remains on working toward real solutions, because New Jerseyans deserve nothing less.”

New Legislation Specifics

The new law calls for New Jersey to coordinate with other PJM states to ensure PJM is serving ratepayers by utilizing a pricing model that serves the intended purpose of obtaining adequate resources at the lowest possible cost at its annual capacity market auction.

It directs the Board of Public Utilities (BPU) to examine whether PJM’s Reliability Pricing Model is advancing that goal. BPU is also directed to continue advocating, along with other states, for reforms at PJM that will increase electricity supply, protect ratepayers, and prioritize clean energy generation.

Under the law, the BPU will report the results of the investigation to the Governor and the Legislature within one year.

PJM members, including electric public utility companies, vote on matters at PJM that impact ratepayers in New Jersey and across the regional grid. A5463/S4363 enhances transparency and accountability so that the public can understand how decisions made at PJM may impact electricity reliability, affordability, and sustainability – calling on electric public utilities and their affiliates operating in New Jersey to disclose details on their voting at PJM to the BPU annually.

Under the law, those utilities and their affiliates will be required to report their recorded votes and explain how each vote furthers the state’s goals of prioritizing the affordability, reliability, and sustainability of electricity production, consumption, and conservation.

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