Senate committee advances suite of utility bills amid heated debate over rates, reliability and investor incentives

The New Jersey Senate Economic Growth Committee on a recent day advanced multiple bills and a concurrent resolution addressing electric utility costs, transmission policy and consumer protections, drawing extended testimony from the state rate counsel, utilities and labor and business groups.

Committee members voted to amend and release bills that would require transmission owners to join a regional transmission organization (RTO), create a Public Utility Fair Profit Act to require redistribution of ‘‘excess profits,’’ direct the Board of Public Utilities (BPU) to apply the lowest reasonable return on equity when setting utility rates and establish limits on summer termination of service. The committee also amended and released a resolution urging the Federal Energy Regulatory Commission (FERC) to require a rebid of PJM Interconnection LLC’s 2025–26 base residual auction.

The push reflects heightened concern among lawmakers about sharp increases in electric bills this year and how state policy should respond. Proponents of the bills said they aim to protect ratepayers from what some called unfair charges and to ensure that consumers receive any profits determined to be excessive. Opponents warned the measures could reduce infrastructure investment, threaten reliability and discourage capital needed for grid upgrades.

Brian Littman, director of the New Jersey Division of Rate Counsel, testified in support of requiring transmission owners to be members of an RTO. He told the committee that a comparable law in Ohio…