The New Jersey Business and Industry Association raised concerns on March 13 about legislation that would require the New Jersey Board of Public Utilities to collaborate with neighboring states in researching and recommending alternatives to the current regional grid operator’s transmission arrangements. The Assembly committee voted 7-3 to advance the bill, known as A-3967.
The issue is significant because it could potentially lead to New Jersey withdrawing from PJM Interconnection, which manages the electrical grid for all or parts of 13 states. Such a move could disrupt electric power reliability and increase costs for businesses and residents.
Ray Cantor, Deputy Chief Government Affairs Officer at NJBIA, said during testimony before the Assembly Telecommunications & Utilities Committee, “We’re not here today to defend PJM. 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 also noted that while the legislation does not mandate withdrawal from PJM, it could result in that 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 future policy options but cautioned against moving toward leaving PJM. “But moving toward a withdrawal from PJM may not be the place that we want to go,” he said.
The committee amended A-3967 so that any recommendations by BPU must be completed within one year after enactment of the legislation.
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. The association 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 according to its official website. NJBIA represents 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.
