JERSEY CITY, N.J. – This afternoon, Senators Andy Kim (D-NJ) and Cory Booker (D-NJ) led a letter alongside seven members of New Jersey’s congressional delegation to PJM Interconnection (PJM), New Jersey’s regional transmission organization (RTO). Ahead of an anticipated 17% rate increase on June 1, the legislators urged PJM to provide updates on steps it is taking to lower rates for New Jersey families and those across the thirteen states PJM operates. 

The legislators wrote: “We write to express concerns over the expected electricity price increase in New Jersey, along with other states across the PJM Interconnection (PJM) territory, in the months ahead, and to request information regarding steps PJM is taking to mitigate these increases. As the regional transmission organization (RTO) for the electric grid across a 13-state region that includes New Jersey, PJM plays an essential role in ensuring capacity to maintain affordable rates for electricity customers. 

 “The results of your most recent capacity auction in 2024 reflect the growing demand on the grid from data centers and advanced computer technology, along with an insufficient increase in new generation. As you know, there is a $14.7 billion cost to ratepayers, which is in large part driving an expected 17 percent or greater increase in electric utility bills in New Jersey beginning June 1, 2025.” 

The legislators conclude: “We know that unlocking the interconnection queue and lowering electricity prices will require efforts from a range of entities, including federal and state partners, in concert with PJM’s ongoing work. However, given PJM’s central role in processing interconnection requests and the impact of the project backlog on the recent capacity auction price spike, we request prompt responses to the following series of questions related to lowering costs for New Jersey families:” 

The full questions the lawmakers pose can be found below: 

1. PJM’s 2022 interconnection reforms do not appear to be delivering the new capacity the region needs. What are the latest updates on efforts to reform and speed up interconnection processes and efficiently connect resources to PJM’s system? 

1. We know that PJM’s interconnection queue is increasingly made up of a higher number of smaller-capacity projects. As PJM is still required to allow open access to the grid, what steps can PJM take to speed up the processing of this changing resource mix? 

1. What reforms are PJM exploring related to expanding transmission capacity, including recognizing the capacity value of neighboring regions and removing barriers to importing capacity? 

1. Prior to the upcoming capacity auction that will impact rates for New Jerseyans in 2026 and 2027, what changes has PJM effectuated to ensure that unnecessary price spikes are avoided in the near future and in the long-term?  

1. Will PJM’s FERC Order 1920 implementation fully incorporate New Jersey’s Energy Master Plan? What steps is PJM taking to ensure that New Jersey does not pay an unfair share of transmission that benefits other states? 

In addition to New Jersey, PJM Interconnection serves as the RTO across Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.  

A full copy of the letter can be found here. 

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