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New Jersey Enacts Law to Procure New Nuclear Capacity With Ratepayer Safeguards

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New Jersey Governor Mikie Sherrill signed legislation authorizing a competitive procurement process for at least 1,100 megawatts of new nuclear generation, the state said Monday, as it seeks to meet rising electricity demand while limiting financial risks to ratepayers.

The Power NJ Act directs the New Jersey Board of Public Utilities and the New Jersey Economic Development Authority to jointly solicit, evaluate and negotiate proposals for new nuclear projects.

State officials said projects must demonstrate a net benefit to customers before receiving final approval.

The measure passed both chambers of the Legislature unanimously.

Under the law, developers must secure federal financing before a project can be approved, while ratepayers will not be responsible for construction costs or cost overruns.

Customers would begin paying only after a plant is completed and generating electricity, according to the state.

The legislation also requires two public comment periods, a public hearing in any municipality where a project is proposed, and consideration of independent assessments by the Division of Rate Counsel during the review process.

The procurement process begins with the BPU issuing a request for expressions of interest within 180 days of the law's enactment, by Jan. 9, 2027.

Developers will then have 60 days to submit proposals outlining regulatory, environmental, financial and workforce plans.

Within 90 days of proposal submission, by April 9, 2027, the NJBPU will determine which projects advance to negotiations.

The negotiation phase could last up to 12 months, with the NJBPU and NJEDA negotiating project costs, electricity pricing and other terms.

A final board order could be issued by July 8, 2028, if agencies determine a project benefits ratepayers, costs are reasonable and the developer has secured federal financing.

Once a plant begins operating, electricity suppliers would purchase Reliable Capacity Credits at a negotiated fixed price rather than relying on wholesale market prices.

Nuclear power provides over 40% of New Jersey's electricity and over 80% of its clean energy generation, according to the state.

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$BKR
Commodities

US Natural Gas Update: Futures Decline on Cooler Weather Outlook

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Commodities

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