A bill sponsored by state Senators Raj Mukherji (D-32) and Shirley Turner (D-15) pushing for power grid transparency for ratepayers as energy bill costs rise was signed into law by Gov. Phil Murphy (D).
By John Heinis/Hudson County View
“While electric bills skyrocket, PJM’s decision-makers have been setting our regional power grid policy in secret. That ends today,” Mukherji said in a statement.
“With the enactment of the grid transparency law, consequential votes and decisions impacting what 65 million ratepayers pay and the timeline for approving clean energy projects in the pipeline will become public record. This is about sunlight, accountability, and putting consumers at the center of our energy policy.”
Bill S-4363 would require electric public utilities to publicly disclose – by filing an annual report to the state Board of Public Utilities – their recorded votes at meetings of PJM Interconnection.
That is company is the Regional Transmission Organization (RTO) that manages the power grid spanning 13 states (including New Jersey) and the District of Columbia.
On Wednesday, the New Jersey Board of Utilities approved $100 utility bill credits at Wednesday’s meeting after ratepayers were hit with a 20 percent electricity bill hike in June, as the New Jersey Monitor reported.
RTO’s such as PJM are responsible for managing the energy capacity market, coordinating the movement of electricity through several states, maintenance of adequate reserves, and ensuring supply meets demand for electricity.
It also determines where new power plants are built and the cost of electricity distributed through its transmission network.
Their decisions also impact the deployment of clean energy, and PJM has been criticized for clean energy projects being stalled in the pipeline and by several states for lack of transparency in decision-making.
“Absolute transparency during these decisive votes is crucial for ensuring that electric utilities and PJM as a whole are working towards low costs and sustainability for consumers across New Jersey,” added Turner.
“This legislation is a critical step in helping to prevent further price hikes and in increasing accountability when decisions are made that directly impact our residents.”
Under the bill, the report would include not only each recorded vote, but also a brief description of each PJM meeting, including its purpose, agenda, and the role the utility or its affiliates played.
It also aims to determine if each vote cast furthers the state’s goals of prioritizing the affordability, reliability, and sustainably of electricity production, consumption, and conservation.
Several electric utilities in the State are registered as affiliate or voting members with PJM and, accordingly, can vote on major decisions regarding its activities. New Jersey joins Maryland as only the second state to enact an RTO grid transparency law.
Today, Murphy also signed a related joint resolution, AJR-216/SJR-154, to investigate PJM’s Reliability Pricing Model and “directing the State of New Jersey to collaborate with neighboring states to promote affordable energy practices.”
“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,” the governor noted.
“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.”
Monday morning, PJM responded by essentially saying that this was a political stunt to try and compensate for past mistakes.
“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,” they said in a statement.
“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.”
Editor’s note: This story was updated with a comment from PJM Interconnection on Monday morning.
