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Senate approves probe urging reforms after disputed PJM auction; lawmakers spar over who should investigate
Summary
The New Jersey Senate passed a joint resolution urging investigation of PJM Interconnection’s recent capacity‑auction pricing spikes and reforms, 25‑12, after a contentious floor debate over whether the state Board of Public Utilities or a bicameral select committee should lead the inquiry.
The New Jersey Senate passed Senate Joint Resolution 154 on May 29, urging an investigation into PJM Interconnection LLC’s capacity‑auction pricing and calling for reforms after a dramatic floor exchange over who should carry out the inquiry.
Senator Joseph Buco, advancing an amendment to SJR 154, urged expanding the proposed investigation beyond PJM to include the New Jersey Board of Public Utilities (BPU) and “any other institution that had that could have contributed to this bridal,” arguing the bicameral select committee on rising energy costs should lead the probe. Buco moved to place the resolution on second reading for amendment to transfer investigative authority to that select committee, saying the committee could “get to the bottom of our energy crisis.”
Majority Leader Teresa Ruiz moved to table Buco’s amendment. The motion to table passed on a roll call, 21‑15, after which senators continued extended floor debate on the scope and leadership of the investigation.
Senator Mike Testa argued against giving investigatory power to the BPU and read the regulator’s mission statement into the record, saying the agency had “achieved absolutely 0 of those goals” and that allowing the BPU to investigate PJM would be “akin to allowing the fox to watch the hen house.” Senator Testa asked why the legislature would not instead use the already‑established bicameral panel.
Senator Smith described what he said were systemic failures in the PJM auction process, including a tenfold increase in auction prices and a lack of verification for bids. “This auction turned into a nuclear disaster for this state,” Smith said, urging broad reform of PJM’s auction mechanics and of New Jersey’s approach to generation and transmission capacity.
Senator Sarlo — chairman of the select committee cited by several members — said PJM “made some mistakes” and acknowledged the select committee’s role, but argued that BPU had “boots on the ground” and “intimate knowledge” of how PJM erred and therefore could appropriately take the lead in the immediate investigation.
Several other senators pressed both practical and long‑term reforms, including rethinking participation in PJM, expediting new generation projects and examining whether deregulation is working. Senator Berzicelli noted the capacity auction price moved from about $28 per megawatt hour to roughly $270 in one cycle, calling that discrepancy a central concern for the body’s inquiry.
After additional remarks and procedural steps, the Senate adopted SJR 154 on a recorded vote, 25 in favor and 12 opposed. The resolution as passed directs review of PJM’s pricing model and urges actions to promote affordable energy practices and reforms; it specifically names PJM Interconnection LLC in its scope.
The resolution’s near‑term consequence is a formal statement of legislative concern and an instruction for investigation and reform; senators on both sides of the debate said they expected concurrent and continuing work by the select committee and by administrative agencies. The Senate returned to routine business after the vote.
Outcome and next steps: SJR 154 passed 25‑12. Sponsors and senators who supported broadening the inquiry signaled they will continue to press for additional oversight and possible legal or regulatory actions as more facts emerge.
