SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 1673

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 8, 2026

      The Senate Economic Growth Committee reports favorably and with committee amendments Senate Bill No. 1673.

      As amended and reported, this bill requires a transmission owner located in the State to be a member of, and transfer control of any electric transmission facilities (facilities) it owns or operates that are located in New Jersey and placed in service on or after January 1, 2027 to, a regional transmission organization (RTO).  The bill defines an “RTO” as an entity approved by the Federal Energy Regulatory Commission (FERC) to serve as a RTO, an independent system operator, or a functionally-similar entity.

      Under the bill, transmission owners located in the State are:  (1) not required to transfer operational control of a facility placed in service prior to January 1, 2027 to an RTO; (2) authorized to voluntarily include a facility constructed prior to January 1, 2027 in an RTO; and (3) authorized to voluntarily withdraw any facility constructed prior to January 1, 2027 from an RTO if federal law otherwise permits the withdrawal.  In addition, the bill provides that the bill’s provisions are not to:  (1) impact transmission rates, including adders, under FERC’s authority with respect to facilities placed in service in the State before or after January 1, 2027 or authorize a modification to any rate, charge, or incentive applicable to such facilities; or (2) limit the authority of the Division of Rate Counsel under current law with respect to proceedings or filings not premised on the bill.

      Finally, the bill clarifies that a facility, or project to construct a facility, that commenced before January 1, 2027 and was cancelled and never placed into service are not subject to the bill’s provisions.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to: 

      (1)  include a findings and declarations section;

      (2)  remove certain definitions, replace the term “transmission entity” with “RTO,” and revise the definition of “transmission owner”;

      (3)  require a transmission owner located in the State on or after the bill’s effective date to be a member of, and transfer operation control of any facilities it owns or operates that are located in New Jersey and placed in service on or after January 1, 2027 to, an RTO.  As introduced, the bill prohibited transmission owners from owning or controlling a facility located in the State on or after the bill’s effective date unless the transmission owner was a member of and transferred control of the facilities to one or more transmission entities that were operational and met certain requirements outlined in the bill;

      (4)  remove provisions concerning specifications for transmission entities;

      (5)  clarify that transmission owners located in the State:  (a) are not required to transfer operational control of a facility placed in service prior to January 1, 2027 to an RTO; (b) have the right to voluntarily include any facility constructed prior to January 1, 2027 in an RTO; and (c) have the right to voluntarily withdraw any facility constructed prior to January 1, 2027 from an RTO if federal law otherwise permits the withdrawal;

      (6)  clarify that the bill is not intended to impact transmission rates, including adders, under FERC’s authority with respect to facilities placed in service in the State before or after January 1, 2027 and is not to authorize a modification to any rate, charge, or incentive applicable to such facilities;

      (7)  specify that the Division of Rate Counsel is to retain its statutory authority with respect to any proceeding or filing not premised on the bill’s provisions;

      (8)  provide that the bill does not apply to any facility, or project to construct such a facility, commenced before or after January 1, 2027 that was cancelled and never placed in service;

      (9)  provide that the bill’s provisions do not govern or operate as a condition upon the ownership, operation, or control of any facility placed in service in the State before January 1, 2027 and do not require any transmission owner to divest, transfer, or relinquish any ownership interest, contractual right, or operational arrangement in existence on the bill’s effective date;

      (10)  revise the bill’s effective date from immediate to January 1, 2027; and

      (11)  revise the bill’s synopsis.