Bill Text: NJ SR96 | 2016-2017 | Regular Session | Amended

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Bill Title: Urges Federal Energy Regulatory Commission to impose cost caps on competitively solicited electric transmission projects.*

Spectrum: Bipartisan Bill

Status: (Passed) 2017-05-25 - Filed with Secretary of State [SR96 Detail]

Download: New_Jersey-2016-SR96-Amended.html

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[First Reprint]

SENATE RESOLUTION No. 96

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED DECEMBER 15, 2016

 

 

Sponsored by:

Senator  BOB SMITH

District 17 (Middlesex and Somerset)

Senator  CHRISTOPHER "KIP" BATEMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

 

 

 

 

SYNOPSIS

     Urges Federal Energy Regulatory Commission to impose cost caps on competitively solicited electric transmission projects.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Environment and Energy Committee on May 1, 2017, with amendments.

  

A Senate Resolution urging the Federal Energy Regulatory Commission to impose cost caps on ¹competitively solicited¹ electric transmission projects.

 

Whereas, Electric public utilities have come under increasing pressure to undertake electric transmission projects in order to modernize and improve the reliability of the electric grid; and

Whereas, The cost to fund electric transmission projects ¹[are] is¹ passed on to electric public utility customers by increasing what customers pay for electricity each month; and 

Whereas, New Jersey has joined other states in urging the Federal Energy Regulatory Commission (FERC) to impose cost caps on electric transmission projects that are put to a competitive bidding process; and

Whereas, ¹[The]¹ FERC is responsible for overseeing project developers' compensation for electric transmission projects; and

Whereas, PJM Interconnection, Inc. (PJM), a regional electric transmission organization serving New Jersey, has recommended that the cost to customers should be a factor for electric public utilities when evaluating whether to undertake an electric transmission project; and

Whereas, In addition, PJM has indicated that ¹[without] with¹ cost caps imposed on electric transmission projects, there ¹[is no incentive] may be an opportunity¹ for the electric public utility to choose ¹[from]¹ the most competitive bid placed by a project developer; and

¹[Whereas, PJM recently suspended a proposed electric transmission project at Artificial Island, Lower Alloways Creek, New Jersey after the original bid for the project more than doubled; and]¹

Whereas, The federal government should enact cost cap measures for new electric transmission projects in order to incentivize electric public utilities to choose from the most competitive project developer prior to constructing a new electric transmission line; and

Whereas, It is altogether fitting and proper for this House to respectfully urge ¹[the]¹ FERC to impose cost caps on ¹competitively solicited¹ electric transmission projects in order to ensure a competitive bidding process for the projects ¹, provide guidance as to the elements appropriately included in cost cap solicitations,¹ and ¹[to]¹ protect customers from rising electricity bills; now, therefore,

 

     Be It Resolved by the Senate of the State of New Jersey:

     1.    This House respectfully urges the Federal Energy Regulatory Commission to impose cost caps on ¹competitively solicited¹ electric transmission projects in order to ensure a competitive bidding process for the projects ¹, provide guidance as to the elements appropriately included in cost cap solicitations,¹ and ¹[to]¹ protect customers from rising electricity bills.

 

     2.    Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Chairman and Commissioner of the Federal Energy Regulatory Commission.