S4591

An Act concerning electric transmission planning in the State and supplementing Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Board” means the Board of Public Utilities.

“Certificate” means a certificate of public convenience and necessity issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

“Electric public utility” or “utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State.

“PJM Interconnection, L.L.C.” or “PJM” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Transmission project” or “project” means a project undertaken by an electric public utility to construct a new transmission line and, if necessary, any related facilities or to modify an existing transmission line. “Transmission project” shall not include a project that has already been deemed necessary and approved by PJM through a needs assessment.

2. a. Prior to undertaking a transmission project in this State, an electric public utility shall apply to the board for a certificate. The application for a certificate shall include:

(1) any information that the board deems necessary for its review of the application pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) an application fee in an amount to be determined by the board.

b. The board shall determine how and for what purposes to utilize the monies provided by the application fees that the board collects from electric public utilities pursuant to paragraph (2) of subsection a. of this section.

c. Nothing in this section shall prohibit an electric public utility from requesting, or the board from approving, the protection of confidential or proprietary information under applicable law. The electric public utility may seek confidential protection of any of the information provided pursuant to subsection a. of this section, subject to the board’s approval.

3. a. The board shall, after notice and hearing, approve an electric public utility’s application for a certificate submitted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) if the board finds that:

(1) the transmission project is necessary to provide adequate, reliable, and efficient service to the utility’s customers and is the least-cost means of satisfying the service needs of the utility’s customers or that the project will promote the development of an effectively competitive electricity market that operates efficiently, is equitable to all customers, and is the least-cost means of satisfying those objectives;

(2) the utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction; and

(3) the utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers.

b. The board shall issue an order with its determination regarding an application for a certificate submitted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) no later than 150 days after the submission of a completed application. The board may extend the date of its action on an application for an additional period not to exceed 75 days if, on or before the 30th day after the application has been submitted and deemed complete, the board finds that an extension will serve the public interest.

c. In the order issued pursuant to subsection b. of this section, the board shall also:

(1) authorize or direct the electric public utility to construct the transmission project proposed in the utility’s application for a certificate submitted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) establish a manner and timeframe in which the utility shall complete the project proposed in the utility’s application for a certificate submitted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. The board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to:

(1) establishing a process through which electric public utilities shall submit an application for a certificate pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) determining an amount for the application fee collected pursuant to paragraph (2) subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately.

STATEMENT

This bill requires an electric public utility (utility) to submit an application to the Board of Public Utilities (board) for a certificate of public convenience and necessity (certificate) prior to undertaking a transmission project (project) in New Jersey, which application is required to include any information deemed necessary by the board and an application fee in an amount determined by the board.

After receiving a completed application, the bill requires the board to issue a board order with its decision regarding the application, its authorization for the utility to construct the project, and a manner and timeframe in which the utility is to complete the project. The board is to act on an application within 150 days and, in certain circumstances, permits the board to extend this 150-day deadline by an additional period not to exceed 75 days. To make its determination, the board is required to consider whether: (1) the project is necessary to provide adequate, reliable, and efficient service to the utility’s customers and is the least-cost means of satisfying the service needs of the utility’s customers or that the project will promote the development of an effectively competitive electricity market that operates efficiently, is equitable to all customers, and is the least-cost means of satisfying those objectives; (2) the utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction; and (3) the utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers.

Under the bill, “transmission project” means a project undertaken by an electric public utility to construct a new transmission line or modify an existing transmission line. This term does not include projects that have already been deemed necessary and approved by PJM Interconnection, L.L.C. through a needs assessment.