A bill requiring electric public utilities in New Jersey to develop and submit a tariff for certain data centers has moved forward in the Assembly Telecommunications and Utilities Committee. Bill A-796, sponsored by Assemblymember Bailey (D-3), targets data centers with a maximum monthly demand of at least 100 megawatts.
The legislation mandates that tariffs must protect non-data center ratepayers from increased costs due to higher electricity demand from these facilities. It also seeks to encourage data centers to adopt energy efficiency measures, including technologies that capture and use heat produced during operations. Utilities would be required to apply the tariff to each qualifying data center within their service area one year after the bill is enacted.
Initially, the New Jersey Business & Industry Association (NJBIA) opposed the bill because it allowed aggregation of multiple facilities under common ownership or control, even if each facility operated separately and individually fell below the 100-megawatt threshold.
“For example, a company could have had 10 facilities across New Jersey, each using between eight and 10 megawatts per month,” said NJBIA Director of Research Jack Ramirez. “Individually, none of those facilities would qualify as a ‘large load’ customer.”
Amendments were made to clarify that only data centers with an actual monthly demand of 100 megawatts are covered by the bill. As a result, NJBIA changed its position on the measure.
“The amended changes help clarify the policy and better protect ratepayers while still allowing innovation and business growth to move forward,” Ramirez said.
The NJBIA serves as the largest statewide employer association in the United States, representing private-sector employers throughout New Jersey across various industries according to its official website. The organization aims to advance competitive excellence and financial success for its members by providing advocacy, information, cost-saving benefits, and fostering partnerships among businesses, government entities, and academic institutions (source). Michele Siekerka is president and chief executive officer of NJBIA (source).
