As New Jersey continues to react to dramatic increases in electricity bills, the Legislature has decided to require that utilities in the state disclose their votes on issues and proposals as members of the multistate grid operator PJM Interconnection.
The bill was signed into law by Gov. Phil Murphy on Aug. 15, effective immediately.
PJM maintains a two-tier voting system in which utilities, electricity generators and other members involved in the wholesale electricity market are participants. In enacting this statute, New Jersey is part of a wider effort by PJM member states to require utilities to disclose the positions they take at private meetings of first-tier committees at PJM.
The lower-tier member committees determine the agendas for the more public, higher-level groups. States want to know if the interests of the state and its energy plans are being supported or undermined by that state’s own utilities.
Similar statutes have been enacted in Maryland and Delaware. Maryland passed the Utility and Accountability Act in May, with an effective date of Oct. 1. In Delaware, the governor signed a bipartisan bill in July; that measure took effect immediately. Pennsylvania and Illinois have bills moving through their legislatures, both aimed at more transparency on utility votes at PJM committees.
Murphy, in his final lap as a term-limited state chief executive, calls the practices at PJM “opaque.” He said it is the “long-term plan of the state” to hold PJM responsible for policies that have delayed the addition of clean energy sources to the regional electricity grid.
The N.J. bill (A5463/S4363) to force utilities to declare their votes at PJM passed easily, but it did not win the support of 1st Legislative District Assemblymen Erik Simonsen and Antwan McClellan. In the Senate, Michael Testa also voted no.
The Assembly vote was 63 to 16, with one abstention. In the Senate, the vote was 29 to 8, with three members not voting. All negative votes in either chamber were by Republican members. There are 28 Republicans in the Assembly and 15 in the Senate.
Katie Mettle, New Jersey state policy lead at Advanced Energy United, said, “Utilities vote at PJM on behalf of us all, but until now, we’ve had no way of knowing whether they’re supporting the clean energy transition or slowing it down.” She said the new law brings “long-overdue transparency to PJM.”
Assemblyman Robert Karabinchak, one of the bill’s sponsors, said, “If a utility votes against New Jersey’s goals, they’ll have to explain themselves. Transparency is the new standard.”
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
