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Bill > S4591

NJ S4591

NJ S4591
Requires electric public utilities to apply to BPU for certificate of public convenience and necessity prior to undertaking transmission project.

summary

Introduced
06/05/2025
In Committee
06/05/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill requires an electric public utility (utility) to submit an application to the Board of Public Utilities (board) for a certificate of public convenience and necessity (certificate) prior to undertaking a transmission project (project) in New Jersey, which application is required to include any information deemed necessary by the board and an application fee in an amount determined by the board. After receiving a completed application, the bill requires the board to issue a board order with its decision regarding the application, its authorization for the utility to construct the project, and a manner and timeframe in which the utility is to complete the project. The board is to act on an application within 150 days and, in certain circumstances, permits the board to extend this 150-day deadline by an additional period not to exceed 75 days. To make its determination, the board is required to consider whether: (1) the project is necessary to provide adequate, reliable, and efficient service to the utility's customers and is the least-cost means of satisfying the service needs of the utility's customers or that the project will promote the development of an effectively competitive electricity market that operates efficiently, is equitable to all customers, and is the least-cost means of satisfying those objectives; (2) the utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction; and (3) the utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers. Under the bill, "transmission project" means a project undertaken by an electric public utility to construct a new transmission line or modify an existing transmission line. This term does not include projects that have already been deemed necessary and approved by PJM Interconnection, L.L.C. through a needs assessment.

AI Summary

This bill requires electric public utilities in New Jersey to obtain a certificate of public convenience and necessity (certificate) from the Board of Public Utilities (BPU) before undertaking any transmission project, which is defined as constructing a new transmission line or modifying an existing one (excluding projects already approved by PJM Interconnection, L.L.C.). To obtain the certificate, utilities must submit an application with all information the BPU deems necessary and pay an application fee determined by the board. When reviewing the application, the BPU will assess whether the transmission project is necessary to provide reliable and efficient service at the lowest cost, whether the utility can effectively manage the construction process, and whether the utility can finance the project without significant financial risk to itself or its customers. The board must make a decision within 150 days of receiving a completed application, with the potential to extend the deadline by an additional 75 days if it serves the public interest. If approved, the BPU will issue an order authorizing the project and establishing a timeline for its completion. The bill also requires the BPU to adopt rules and regulations to implement the new certification process, including establishing the application submission process and determining the application fee amount.

Committee Categories

Business and Industry

Sponsors (4)

Last Action

Senate Economic Growth Hearing (10:30:00 12/11/2025 Committee Room 4, 1st Floor, State House Annex, Trenton, NJ) (on 12/11/2025)
(1 Companion Bills)

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/S4591
BillText https://pub.njleg.gov/Bills/2024/S5000/4591_I1.HTM
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