While most of us are familiar with JCP&L's penchant for transmission projects, it is not alone. In December 2024, PSE&G, New Jersey’s largest utility, was fined $6.6 million for “failing to fully and accurately provide information” in gaining FERC’s approval for its Roseland-to-Pleasant Valley transmission line project(“RPV”).
In a January 10, 2025 “protest” filing with FERC, Public Citizen, a Washington DC-based watchdog, now claims that instead of the 67 transmission line towers that were rebuilt as part of the project, only 8 were in fact needed. The filing also blamed PJM, the regional transmission organization, for the lack of independent review before they approved the project. Specifically, “PJM relied entirely on PSEG’s PowerPoints in approving the $546 million project.”
None of this is a surprise.
New Jersey and much of our nation operate under a business model whereby an essential public service (electrical power) is provided by for-profit companies that were granted a franchise to operate as a monopoly. This model has an inherent conflict of interest that benefits management and shareholders at the expense of captive customers who cannot switch their utility companies.
History is replete with stories that for-profit utility companies have worked against public interest despite their mandates to operate otherwise.
Given the history, it seems clear that this business model with its inherent conflict of interest and the high costs to our society, which includes social and economic costs from power outages, can’t be the right model for an essential public service.
See “Utilities Dirty Secret”: https://www.njcharge.org/single-post/utilities-dirty-secret
In our past posts, we suggested that a good first step is for New Jersey to include a sunset clause for a utility franchise, say after 7 or 10 years, and to consider revoking a utility franchise. Currently, a franchise allows a utility company to operate as a monopoly. Without a sunset clause, there are minimal incentives for a utility to properly maintain its energy grid system since proper maintenance comes at the expense of the bottom line for these for-profit companies.
In California, some towns and counties proposed a co-op to replace PG&E, the utility company held to be responsible for the wildfire that destroyed Paradise. In parts of New Jersey, electricity is provided by a co-op, a non-profit entity that is owned by either a township or its customers.
See also “It’s Time to Rethink Our Electric Grid”: https://www.njcharge.org/single-post/it-s-time-to-rethink-our-electric-grid
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