A 2757 New Jersey General Assembly · 2026-2027 Regular Session

Requires transmission owners to join regional transmission organizations approved by Federal Energy Regulatory Commission.*

This bill (A 2757) requires electric transmission owners in New Jersey - such as utility companies - to join approved regional transmission entities (like independent system operators) and transfer control of their transmission facilities to these entities. It directly affects electric utilities operating transmission infrastructure within the state, mandating they comply with specific entity requirements. Key provisions include ensuring transmission entities are independent of power generators, minimizing duplicate fees ("rate pancaking"), improving grid reliability, and promoting competitive electricity markets. The law takes effect immediately upon passage.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

General Assembly Passage

Jun 2026

Senate Passage

Jun 2026

Signed into Law

Jul 2026

Introduced Jan 13, 2026 Signed Jul 7, 2026

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What changed between versions

Introduced → Reprint · 5 edits

MODERATE

The bill was amended in committee to narrow its requirement from joining generic 'transmission entities' to specifically joining FERC-approved regional transmission organizations (RTOs), independent system operators, or functionally-similar entities. A new legislative findings section was added to justify the requirement, formal definitions were introduced, and the effective date was changed from immediate to January 1, 2027.

Scope change

The bill's scope was narrowed from requiring transmission owners to join any 'transmission entity' meeting unspecified criteria to specifically requiring membership in FERC-approved regional transmission organizations, independent system operators, or functionally-similar entities. The effective date was also extended from immediate to January 1, 2027.

SCOPE

The core requirement was narrowed: transmission owners must now join specifically FERC-approved regional transmission organizations, independent system operators, or functionally-similar entities (defined as 'RTOs'), rather than the broader category of 'transmission entities' that met unspecified specifications.

New co-sponsors were added: Senator Andrew Zwicker (District 37, Bergen) and Senator Timberlake, indicating broader legislative support for the bill.

REQUIREMENT

A new Section 1 was added containing legislative findings and declarations stating that reliable operation of the electric transmission system is essential to public health, safety, and economic welfare; that regional coordination through FERC-approved entities promotes reliability; that membership provides regulatory certainty; and that it is in the public interest to require all New Jersey transmission facilities to be owned by RTO members.

DEFINITION

A new Section 2 was added providing formal definitions for 'electric transmission facility' (interconnected group of lines and equipment for bulk energy transfer), 'RTO' (FERC-approved regional transmission organization, ISO, or functionally-similar entity), and 'transmission owner' (owner or operator of an electric transmission facility).

TIMELINE

The effective date was changed from 'immediately' to January 1, 2027, giving stakeholders a defined period before the requirement takes effect.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Upper · Passed

Passed Senate (Passed Both Houses) (25-15)

upper

Jun 30, 2026

Lower · Passed

Passed by the Assembly (57-21-1)

lower

Jan 13, 2026

Introduced

Introduced, Referred to Assembly Telecommunications and Utilities Committee

lower

4 primary · 1 co-sponsor