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

A2757 1R

[First Reprint]

ASSEMBLY, No. 2757

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman ANDREA KATZ

District 8 (Atlantic and Burlington)

Assemblyman CLINTON CALABRESE

District 36 (Bergen and Passaic)

Assemblywoman ELLEN J. PARK

District 37 (Bergen)

Senator� ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Co-Sponsored by:

Senator Timberlake

SYNOPSIS

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

CURRENT VERSION OF TEXT

���� As reported by the Assembly Telecommunications and
Utilities Committee on June 15, 2026, with amendments.

��

An Act

concerning electric transmission facilities and
supplementing Title 48 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

����
1
[
1. As used in
P.L. , c.
(C. ) (pending before the
Legislature as this bill):

���� �Affiliate� means any
individual or entity that directly or indirectly controls, is under common
control with, or is controlled by a public utility.�

���� �Electric public utility�
means a public utility, as that term is defined in R.S.48:2-13, that transmits
and distributes electricity to end users within the State.

���� �Electric transmission
facility� means an interconnected group of electric transmission lines and
associated equipment for moving or transferring electric energy in bulk between
points of supply and points at which it is transformed for delivery over the
distribution system lines to consumers or is delivered to other electric
systems.

���� �Rate pancaking� means the practice
of multiple transmission providers charging customers multiple, duplicative
transmission charges for electricity deliveries crossing multiple transmission
systems.

���� �Transmission entity� means an
entity approved by the Federal Energy Regulatory Commission to serve as a
regional transmission organization, independent system operator, or
functionally-similar entity.

���� �Transmission owner� means the
owner or operator of an electric transmission facility. �Transmission owner�
includes, but is not limited to, an electric public utility.

���� �User� means any entity or
affiliate of that entity that buys or sells electric energy in the transmission
entity�s region or in a neighboring region.
]
1

����
1
[
2. a.�
Notwithstanding any law, rule, regulation, or order to the contrary, no
transmission owner shall own or control an electric transmission facility
located in this State on or after the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill) unless that transmission owner is a member of, and
transfers control of those electric transmission facilities to, one or more
transmission entities that are operational and meet the specifications outlined
in subsection b. of this section.

���� b.��� A transmission owner
located in this State shall be in compliance with this section if each
transmission entity of which the transmission owner is a member meets all of
the following specifications:

���� (1)� the transmission entity
is approved by the Federal Energy Regulatory Commission;

���� (2)� the transmission entity
separates control of electric transmission facilities from control of electric
generation facilities;

���� (3)� the transmission entity
implements, to the extent reasonably possible, policies and procedures designed
to minimize rate pancaking within the State;

���� (4)� the transmission entity
improves service reliability within the State;

���� (5)� the transmission entity
achieves the objectives of an open and competitive electric generation
marketplace, including the elimination of barriers to market entry and the
preclusion of control of bottleneck electric transmission facilities in the
provision of electric retail choice;

���� (6)� the transmission entity
is of sufficient scope or otherwise operates to substantially increase
economical supply options for consumers;

���� (7)� the governance structure
or control of the transmission entity is independent of the users of the
electric transmission facilities, and no member of the transmission entity�s
board of directors has an affiliation with a user during the member�s tenure on
the board, such as to unduly affect the transmission entity�s performance;

���� (8)� the transmission entity
operates under policies that promote positive performance designed to satisfy
the electricity requirements of customers; and

���� (9)� the transmission entity
is capable of maintaining real-time reliability of the electric transmission
system, ensuring comparable and non-discriminatory transmission access and
necessary services, minimizing system congestion, and further addressing real or
potential transmission constraints.
]
1

����
1
[
3. The Board
of Public Utilities may adopt, pursuant to the �Administrative Procedure Act,�
P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary
for the implementation of P.L. , c. (C. )
(pending before the Legislature as this bill).
]
1

����
1
1.�� The
Legislature finds and declares that:�

����
a.��� The
reliable operation of the electric transmission system is essential to the
health, safety, and economic welfare of the residents of the State and to the
State�s ongoing response to the electricity affordability emergency declared by
the Governor;

����
b.��� The regional
coordination of electric transmission facilities, through entities approved by
the Federal Energy Regulatory Commission (FERC) to serve as regional
transmission organizations, independent system operators, or functionally-similar
entities, promotes system reliability;

����
c.��� Membership
in such entities is necessary to provide regulatory certainty for transmission
planning, protect the State�s investment in regional transmission
infrastructure, and ensure that changes in the ownership or business strategy
of any individual transmission owner do not disrupt the reliable operation of
the State�s electric transmission system; and

����
d.��� It is
therefore in the public interest of the State to require each electric
transmission facility located in New Jersey to be owned and operated by a
transmission owner that is a member of, and has transferred operational control
of those facilities to, an entity approved by FERC to serve as a regional
transmission organization, independent system operator, or functionally-similar
entity.
1

����
1
2.�� a.�
As used in this section:�

����
�Electric transmission
facility� means an interconnected group of electric transmission lines and
associated equipment for moving or transferring electric energy in bulk between
points of supply and points at which it is transformed for delivery over the
distribution system lines to consumers or is delivered to other electric
systems.

����
�RTO� means an entity
approved by the Federal Energy Regulatory Commission to serve as a regional
transmission organization, independent system operator, or functionally-similar
entity.

����
�Transmission owner� means
the owner or operator of an electric transmission facility.

����
b.��� Notwithstanding any
law, rule, regulation, or order to the contrary, a transmission owner located
in this State on or after the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill) shall be a member of, and
transfer control of any electric transmission facilities that it owns or
operates to, an RTO.

����
c.��� The Board of Public
Utilities may adopt, pursuant to the �Administrative Procedure Act,� P.L.1968,
c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to
implement this section.
1

����
1
[
4.
]

3.
1
���� This
act shall take effect
1
[
immediately
]

on January
1, 2027
1
.