FE · 10-Q · 2026Q1 · Full report
JCP&L Offshore Transmission and NJBPU Actions
FIRSTENERGY CORP · 2026-04-28 · Importance 74 · Surprise 58
JCP&L submitted a proposal accepted in part by the NJBPU on October 26, 2022 that included approximately $723 million of investments to build and upgrade transmission infrastructure to connect offshore wind to New Jersey’s grid and an option to acquire up to a 20% equity stake in the project owner. NJBPU actions in 2023–2026 have altered the project timeline and scope: an August 13, 2023 FERC incentive was approved, NJBPU directed delays in August 2023, and on April 22, 2026 the NJBPU issued an order authorizing termination of all but one of the transmission projects awarded to JCP&L under the October 26, 2022 order. NJBPU staff has also recommended a potential $44 million reliability-related penalty in April 2026; if FERC approves the termination agreement filed April 23, 2026, JCP&L expects to file a subsequent abandonment proceeding with FERC.
Key facts
- JCP&L’s NJBPU-accepted offshore transmission proposal included approximately $723 million in investments and projected an investment ROE of 10.2% and an option for JCP&L to acquire up to a 20% equity stake in Mid-Atlantic Offshore Development, LLC.
- On April 13, 2026, NJBPU Staff issued a letter stating its intention to recommend a penalty against JCP&L in the amount of $44 million related to reliability performance, and requested a meeting to discuss the recommendation and possible resolution.
- On January 14, 2026, the NJBPU issued an order authorizing JCP&L to modify its Lost Revenue Adjustment Mechanism rate rider to recover approximately $16 million (pre-tax) of sales losses primarily resulting from implementation of JCP&L’s Energy Efficiency and Conservation Plan during July 1, 2023 through June 30, 2024; the modification was effective February 1, 2026.
- On June 18, 2025, the NJBPU approved a stipulation under which JCP&L agreed to apply a temporary rate credit of $30.00 to each residential electric customer’s monthly bill in July and August 2025 and recover the deferred amounts by charging $10 to each residential bill from September 2025 through February 2026 without carry charges, subject to final reconciliation.
- On April 22, 2026, the NJBPU issued an order authorizing termination of all but one of the transmission projects awarded to JCP&L per the NJBPU’s October 26, 2022 order; on April 23, 2026, the NJBPU and PJM filed the termination agreement at FERC.
- As of March 31, 2026, JCP&L had substantially recovered the regulatory asset associated with the temporary $30 residential rate credits.
- On September 17, 2021 JCP&L submitted a proposal to NJBPU and PJM to build transmission infrastructure connecting offshore wind to the New Jersey grid; on October 26, 2022 JCP&L’s proposal was accepted in part by the NJBPU.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | committed | +1.1% | JCP&L’s NJBPU-accepted offshore transmission proposal included approximately $723 million in investments and projected an investment ROE… |
| operating_income | positive | realized | +0.4% | On January 14, 2026, the NJBPU issued an order authorizing JCP&L to modify its Lost Revenue Adjustment Mechanism rate rider to recover… |
| liability | negative | contingent | -0.0% | On April 13, 2026, NJBPU Staff issued a letter stating its intention to recommend a penalty against JCP&L in the amount of $44 million… |
| revenue | unclear | realized | — | On June 18, 2025, the NJBPU approved a stipulation under which JCP&L agreed to apply a temporary rate credit of $30.00 to each residential… |