New Jersey is rethinking how its utilities make money. (New Jersey Monitor)
Per Gov. Mikie Sherrill’s executive order, the NJ Board of Public Utilities is weighing the model for orgs like PSE&G and JCP&L (their current ROE, usually around 9.6%, is tied to capital investments). The alternative? One rewarding performance metrics like affordability, reliability, and interconnection speed.
Yes, but: Current and former utility regulators from performance-based states broadly endorsed the shift…yet warned that the framework was designed for an era of flat load growth. Per Illinois Commerce Commission chair Carrie Zalewski: "That world, obviously, is gone."