New Jersey has taken another step toward expanding its energy supply after Gov. Mikie Sherrill signed bipartisan legislation launching a competitive process to develop new advanced nuclear energy projects across the state.
The new law, known as the Power NJ Act, directs the New Jersey Board of Public Utilities and the New Jersey Economic Development Authority to begin evaluating proposals for advanced nuclear facilities designed to meet growing electricity demand while protecting utility customers from unnecessary costs. The legislation creates a process for procuring at least 1,100 megawatts of new nuclear generation, roughly equivalent to the output of a large nuclear reactor and enough electricity to serve hundreds of thousands of homes.
The legislation was sponsored by Senator John Burzicehlli and Assemblymen Wayne DeAngelo, Dave Bailey and Robert Karabinchak, and passed both houses of the Legislature unanimously.
How the law works
Rather than approving a specific nuclear power plant, the law establishes a competitive procurement process.
Under the legislation, developers will be invited to submit proposals for advanced nuclear projects. State officials will evaluate those proposals based on several factors, including:
- Whether the project improves electric grid reliability.
- Whether it supports New Jersey’s clean energy goals.
- Whether it provides a net financial benefit for ratepayers compared with other energy options.
The Board of Public Utilities is not required to approve any project if proposals fail to meet those standards.
Consumer protections included
Supporters say the legislation contains several safeguards intended to protect utility customers.
Among them:
- Ratepayers would not pay for projects while they are under construction.
- Developers must secure federal financing before a project can move forward.
- Customers would not be responsible for construction cost overruns.
- Projects must demonstrate a net benefit for ratepayers.
- The process includes two public comment periods and a public hearing in any municipality where a project is proposed.
Meeting growing energy demand
Gov. Sherrill said the law is intended to help New Jersey prepare for increasing electricity demand while maintaining reliable, carbon-free energy generation.
“The decisions we make today will determine the future we leave our kids, so we are putting New Jersey on a path to an affordable and secure energy future,” Sherrill said.
Nuclear power currently supplies more than 40% of New Jersey’s electricity and more than 80% of the state’s clean energy generation, according to the governor’s office.
What happens next
The law establishes a multi-year process before any project could receive approval.
Under the law, the Board of Public Utilities must issue a request for expressions of interest from developers by Jan. 9, 2027. Projects would then move through a multi-stage review and negotiation process before the state determines whether any proposal provides a net benefit for ratepayers.
