The New Jersey Business and Industry Association raised concerns on March 13 about legislation advanced by an Assembly committee that would require the New Jersey Board of Public Utilities to work with neighboring states to research and recommend alternatives to the current regional grid operator’s transmission arrangements.
The issue is significant because changes to how New Jersey manages its electric grid could affect power reliability, costs, and business operations across the state. The NJBIA said it could not support Assembly Bill 3967 due to worries that it might eventually lead New Jersey to withdraw from PJM Interconnection, which has managed the electrical grid for all or parts of 13 states for a century.
“We’re not here today to defend PJM,” NJBIA Deputy Chief Government Affairs Officer Ray Cantor said in his testimony before the Assembly Telecommunications & Utilities Committee. “There’s no doubt the recent spikes in electric prices are partly due to PJM being caught flat-footed and not having updated their procedures and rules quickly enough to respond to changing dynamics in the energy market.”
Cantor said that while the bill does not force withdrawal from PJM, it could result in such an outcome. “We are very concerned as a business community that we have an energy system and grid management, that prioritizes affordability and reliability,” Cantor said. “Energy is the backbone of everything we do economically. From a business perspective we need to move cautiously and not just respond to the problems of the day but look at things more holistically.” He added that NJBIA would support legislation focused on studying recent electric rate increases and policies moving forward but cautioned against moving toward leaving PJM: “But moving toward a withdrawal from PJM may not be the place that we want to go.”
The committee amended the bill so that any recommendations from BPU must be completed within one year after enactment.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association, representing employers across various sectors according to its official website. It advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer of NJBIA according to its official website. The association supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy, practical information, and cost-saving benefits for business prosperity according to its official website.
As lawmakers consider next steps for A-3967, observers will watch closely how potential changes could impact both energy policy and economic stability in New Jersey.
