Haque Testifies on NJ Bill to Study Grid Connection Options

New Jersey Consumers Enjoy Value in being Part of PJM, Haque Tells Committee


Asim Haque, Vice President – State and Member Services, testified Monday, Aug. 17, before a committee of the New Jersey Senate, which is considering Bill S2804 to study the potential impact of withdrawing from the high-voltage electric grid operated by PJM.

“While ‘going it alone’ would be very challenging based upon the interstate nature of the transmission grid, it could also be financially harmful to families and businesses in the state of New Jersey,” Haque told the Senate Environment and Energy Committee in prepared testimony. “You would essentially forfeit the regional value an RTO like PJM provides.”

The bill calls for a study comparing the potential costs and beneficial impacts of four scenarios:

  • Withdrawing from PJM and creating an independent grid operating within New Jersey
  • Leaving PJM for a grid that operates within New York
  • Remaining in PJM
  • Any other option the Board of Public Utilities considers to be in the best interest of ratepayers

The results of the study, to be conducted by the Board of Public Utilities, would be expected in one year.

PJM Partnership Benefits Consumers

Haque’s testimony focuses on PJM’s role as a regional transmission organization (RTO) and how, through more than 90 years of partnership, New Jersey’s residents have benefited from PJM’s services including reliability, reduction in cost and reduction in emissions.

“PJM feels confident that New Jersey would continue to find the greatest value for its consumers in being part of PJM,” Haque said. “We believe that the study would show that PJM is the best option for New Jersey and all states in our footprint. Reliability. Affordability. All while trying to assist states in advancing their policy objectives.”

PJM Working with States to Reach Policy Goals

PJM also can help states advance their energy policy objectives, Haque said. PJM’s markets have contributed to a downward trajectory in carbon dioxide emission rates. From 2005 to 2019, New Jersey’s average CO2 emissions decreased by 23 percent.

“PJM has been planning and operating the system for a long time, and our subject matter experts are exceptionally valuable resources available to New Jersey as it navigates the road map laid out in the Energy Master Plan and state law,” Haque said.