The basics:
- NJBPU directs 4 electric utilities to submit 30-day plans to modernize grid, reduce electricity costs
- Order follows Gov. Sherrill’s Executive Order No. 2 to streamline energy interconnections, boost in-state generation
- Utilities must outline compliance with interconnection rules, hosting capacity upgrades, energy storage plans
- Effort targets rising power demand; high energy prices across New Jersey, the PJM region
The New Jersey Board of Public Utilities has directed the state’s four electric distribution companies (EDCs) to develop 30-day plans aimed at modernizing the electric grid, accelerating the connection of distributed energy resources, and reducing electricity costs for residents and businesses.
The directive comes through a newly issued Request for Information to Atlantic City Electric, Jersey Central Power & Light, PSE&G and Rockland Electric Co. It responds to Gov. Mikie Sherrill’s Executive Order No. 2, signed Jan. 20 at the start of her administration.
The order calls on NJBPU to fully enforce existing interconnection rules as well as identify additional ways to streamline the process for bringing new energy resources online.
The RFI requires utilities to submit comprehensive written responses within 30 days. Submissions must detail how they are complying with interconnection regulations and where efficiencies can be improved. Additionally, they must detail how they will support distributed energy development on constrained circuits.
Expanding capacity
The effort aims to address mounting electricity demand and high energy prices across New Jersey and the broader PJM region. NJBIZ has extensively reported the issue, which dominated the gubernatorial race last fall.
It has since continued to be a key area of focus now-Gov. Sherrill. The new governor followed through on her campaign pledge to declare a Day One state of emergency on utility costs. She signed two EO’s during her inauguration. The first froze rate hikes; the aforementioned EO 2 targeted power generation.
NJBPU says New Jersey is looking to expand in-state generation through distributed energy resources such as solar and energy storage. It notes that deployment has increased, through programs like community solar and competitive incentives.
However, hosting capacity constraints have limited progress on key distribution lines. It says targeted infrastructure upgrades as well as the use of advanced technologies, such as smart inverters, can expand hosting capacity.
The RFI calls on utilities to address five specific areas:
- Compliance with NJBPU interconnection rules under N.J. Administrative Code 14:8-5, which governs interconnection requirements and protocols; including the pre-application verification and evaluation process and standardized protocols for system impact studies
- Potential regulatory changes to speed project approvals
- Improvements to hosting capacity maps and access to 34.5 kV lines
- Identification of heavily constrained or unreliable circuits for priority upgrades
- Implementation plans for energy storage, smart inverter functions and flexible interconnection protocols.
“Addressing interconnection challenges is critical to lowering costs and getting clean energy online faster,” said NJBPU President Christine Guhl-Sadovy. “This RFI is the first step toward meeting Gov. Sherrill’s Executive Orders and advancing grid modernization in New Jersey.”
Responses are due by March 5, 2026.
‘Every dollar matters’
“PSEG welcomes Gov. Sherrill as New Jersey’s 57th governor,” PSEG told NJBIZ. “We appreciate her focus on addressing energy affordability and look forward to the opportunity to work collaboratively with her administration and state leaders to address this important topic.
Opinions
Several readers have shared their thoughts on the issue with NJBIZ:
- Energy affordability must lead New Jersey policy in 2026
- Energy costs, grid strain are reshaping the market
- Experts urge PJM to modernize power grid
“PSEG believes that steps must be taken to safeguard long-term energy reliability and cost effectiveness for residents as New Jersey relies on imported electricity for more than 40% of its power, which is only expected to grow as demand increases,” the statement continued. “We are confident that open dialogue and information sharing will lead to workable solutions. And we are committed to our ongoing workforce development initiatives that aim to train people and expand job opportunities in the state.
“We look forward to rolling up our sleeves and partnering closely with the governor, BPU and policymakers to support the state and the people of New Jersey.”
JCP&L told NJBIZ, “We know every dollar matters, and we’re working every day to keep electric bills affordable while also making the investments needed to provide the reliable power communities count on. As we review this RFI, we will continue to work closely with our regulators and communities to ensure that we are meeting the reliability and capacity needs of our customers.”
Shared concerns
In a statement to NJBIZ, Atlantic City Electric said customers are feeling the financial pressure of rising energy bills. The utility says it shares the same affordability concerns as its customers.
“We welcome continued engagement with regulators and stakeholders to support Gov. Sherrill’s call to accelerate in-state generation and infrastructure improvements needed to increase New Jersey’s energy capacity and address the supply-and-demand imbalance that is driving energy supply prices higher and increasing costs for our customers,” Atlantic City Electric told NJBIZ. “As we work to bring new resources online and modernize our infrastructure, we remain focused on ensuring fairness, reliability and long‑term value for the customers and communities we serve.
“We are committed to modernizing our energy infrastructure to further improve energy service for our customers. This includes our Powering the Future initiative, a multi-year infrastructure investment program that supports more than 80 individual projects to further enhance service to thousands of customers, while also facilitating the interconnection of approximately 385MW of new solar generation – equivalent to 50,000 average residential solar arrays – enabling more distributed energy resources at a time when demand continues to increase,” the statement continued.
Atlantic City Electric added it was reviewing NJBPU’s request. It also highlighted its partnership with SHARES to expand the $4.5 million Customer Relief Fund, which helps South Jersey residents with energy costs.
Editor’s note: This story was updated at 2:48 p.m. Feb. 5, 2026, to include a statement from Atlantic City Electric.
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