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Governor Sherrill Signs Legislation Launching Procurement Process for New Nuclear Energy & Setting Strong Safeguards to Protect Ratepayers from Costs 

Category: New Jersey
Related Categories: Editor's Picks, Electric, New Law, Nuclear Energy

On July 13, 2026 Governor Sherrill signed the Power NJ Act launching the state’s procurement process for new nuclear energy that will help New Jersey meet its growing energy needs. The bill will establish a transparent, competitive process by the NJBPU and NJEDA to evaluate proposals and ensure any project is the best investment for New Jersey ratepayers. The bill passed both houses of the Legislature unanimously with strong bipartisan support.

Additionally, the bill sets strong safeguards for ratepayers – including assuring that they won’t bear any costs until a project is built and supplying energy, nor be responsible for cost overruns.

Other safeguards include:

  • Requiring projects to secure federal financing, shifting the risk away from New Jersey ratepayers;
  • Requiring any project provide a net benefit to ratepayers;
  • Requiring at least two separate public comment periods and a public hearing in any proposed municipality;
  • Requiring NJBPU and NJEDA to take into account independent assessments by the Division of Rate Counsel to ensure ratepayers’ interests remain central at every step.
This major step builds on the Governor’s aggressive energy affordability agenda, including legislation signed last week to hold utility companies and data centers accountable. The Administration’s actions within these first six months will save ratepayers $1B annually, according to Synapse Energy Economics.
  • Signing Executive Orders 1 and 2 on her first day in office to freeze electric rate hikes and accelerate new power generation through an all-of-the-above energy strategy.
  • Successfully advocating for a price collar on PJM to help stabilize electricity costs over the next four years.
  • Lifting the 50-year de facto moratorium on new nuclear power and launching a Nuclear Task Force to advance new nuclear opportunities.
  • Announcing a historic expansion of the state’s Community Solar Energy Program to support up to 3,000 MW of new solar capacity.
  • Approving 18 new clean energy projects, including 15 solar projects and three battery storage projects that will produce enough energy to power over 40,000 homes.
  • Awarding $79 million through the New Jersey Economic Development Authority to support 10 large-scale clean energy projects.
  • Rolling out the most comprehensive plan in the nation on data centers to establish guardrails that will hold them accountable, while positioning New Jersey to be a leader in AI innovation.
Summary of Legislation 

Power NJ Act (A4881/S4296 – DeAngelo, Bailey, Karabinchak / Burzichelli, Smith, Scutari)

  • The bill creates a competitive framework, administered jointly by NJBPU and the NJEDA, for the State to procure at least 1,100 MW of new nuclear generation.
    • Within 180 days (by March 10, 2027) – NJBPU opens request for expressions of interest. Developers have 60 days to submit proposals with regulatory, environmental, financial, and workforce information.
    • Next 90 days (by June 8, 2027) – Provisional qualifications. NJBPU qualifies projects to enter the negotiation period or denies them.
    • Next 12 months (by June 8, 2028) – Negotiations and stipulations. NJBPU and NJEDA negotiate with project entities including setting accurate cost estimates, price of electricity, and other terms.
    • Next 90 days (before September 6, 2028) – NJBPU issues Final Board Order if project provides a net benefit to ratepayers, costs are not unreasonable or excessive in light of customers’ overall bills, and the developer has secured federal financing.
  • Ratepayers pay nothing during construction. Once the plant is delivering power, suppliers purchase Reliable Capacity Credits (RCCs) at a fixed negotiated price, instead of volatile market prices