Utility Dive•1 day ago
New Jersey regulators take first step to reform electric utility business model
Key Takeaway
New Jersey's move to reform utility regulation could reshape grid investment, operational incentives, and cost structures for energy developers and large consumers in the state.
AI Summary
- •New Jersey's Board of Public Utilities (BPU) is initiating a review of the electric utility business model, including hiring a consultant for a potential overhaul.
- •Potential reforms under consideration include Performance-Based Ratemaking (PBR), multiyear rate plans, and the possibility of lower utility returns.
- •These changes could significantly alter how utilities are compensated, impacting grid investment, interconnection processes, and the cost structure for large power consumers and IPPs in New Jersey (PJM territory).
Topics
financinginterconnectpjmpolicy
Article Content
Performance-based ratemaking, multiyear rate plans and lower utility returns are all options the Board of Public Utilities plans to consider. It recently approved hiring a consultant to assist a potential overhaul.