Power supplier PSE&G's large load pipeline surges by 47%, reaching 9.4 gigawatts, with a significant portion attributed to speculative demand
In the heart of August 2025, a significant development is unfolding in the New Jersey Legislature with the introduction of A.B. 5439. This bill, currently under consideration, proposes a potential shift in the state's energy landscape by enabling regulated utilities like Public Service Electric and Gas (PSE&G) to own in-state power generation.
The proposed legislation aims to tackle growing resource adequacy challenges in New Jersey and the PJM region. The current reliance on market signals has struggled to prompt sufficient new supply, and this bill seeks to address this issue by allowing utilities to directly own generation resources [1][2].
PSE&G, the state's largest utility with approximately 2.4 million electric customers, has so far expressed no interest in owning merchant generation. However, the bill could provide a new framework for utility participation in generation ownership, a move that could help ensure an adequate power supply as demand rises significantly, particularly due to data center growth and manufacturing onshoring [1][2][3].
As of the latest reports in early August 2025, no further legislative milestones, such as passage or implementation, have been indicated. This means that the bill remains under consideration, with details still evolving [1][2].
Meanwhile, PSE&G has reported a 1% increase in weather-normalized electric sales over the past 12 months, a decrease from a 2% increase in the 12-month period from the end of the first quarter. Despite this, the potential load of large customers for PSE&G increased by 47% to 9.4 GW at the end of June [1].
Interestingly, only 10-20% of interconnection inquiries are expected to come to fruition, suggesting a more measured growth in the energy sector [1]. PSE&G is in discussions to supply data centers from its 3,758-MW nuclear fleet in New Jersey and Pennsylvania.
The state's policymakers are addressing four key issues: demand forecasting, grid reliability, affordability, and environmental policy goals, as stated by PSE&G's chair, president, and CEO, Ralph LaRossa. LaRossa has been vocal about the flaws in PJM's capacity market, stating that it is not attracting new power supplies. He also noted that there has not been any new baseload generation built in New Jersey for quite some time [1].
If the vote for governors to join PJM's board doesn't pass, PSEG could seek intervention from the Federal Energy Regulatory Commission. LaRossa has also criticized the governance structure of PJM, stating it is the core problem [1].
As the legislative process unfolds, the potential impact of A.B. 5439 on New Jersey's energy landscape remains to be seen. However, one thing is clear: the state's energy sector is facing significant challenges, and policymakers are actively seeking solutions.
References:
[1] NJ Spotlight. (2025, August 5). PSE&G Seeks to Supply Data Centers from Nuclear Fleet as Demand Grows. Retrieved from https://www.njspotlight.com/2025/08/pseg-seeks-to-supply-data-centers-from-nuclear-fleet-as-demand-grows/
[2] NJ.com. (2025, August 4). PSE&G's Load Increases as Demand for Electricity Rises. Retrieved from https://www.nj.com/business/2025/08/psegs-load-increases-as-demand-for-electricity-rises.html
[3] NJBIZ. (2025, August 3). PSE&G's Load Surges as Data Centers and Manufacturing Onshore. Retrieved from https://www.njbiz.com/2025/08/03/psegs-load-surges-as-data-centers-and-manufacturing-onshore/
The proposed legislation, A.B. 5439, could bring a shift in New Jersey's energy landscape by allowing regulated utilities like PSE&G to own in-state power generation, which could potentially address the growing resource adequacy challenges in the state's energy sector. This move, if implemented, could lead to increased utility participation in generation ownership, contributing to an adequate power supply as demand rises due to factors such as data center growth and manufacturing onshoring.
The state's policymakers are addressing various issues in the energy sector, including demand forecasting, grid reliability, affordability, and environmental policy goals, seeking solutions to overcome the challenges faced by the industry and finance sector, particularly in the context of energy.
