In one of his final actions before leaving office, former New Jersey Governor Phil Murphy opted to “pocket-veto” legislation that would have allowed tariffs on large-load energy users, including data centers. The bill, A-5462/S-4307, would have required the New Jersey Board of Public Utilities to set a tariff for energy users consuming more than 100 megawatts monthly.
The New Jersey Business & Industry Association (NJBIA), which represents employers across sectors such as manufacturing and services and is the largest statewide employer association in the United States according to its official website, opposed the measure. NJBIA argued that the bill was intended to protect utility customers from rate increases but would instead discourage new data center construction in New Jersey, impacting economic activity and job creation.
Ray Cantor, Deputy Chief Government Affairs Officer at NJBIA, explained that data centers located anywhere within the 13-state PJM region affect the entire region’s energy capacity market. He said a state law imposing tariffs on these facilities could harm only New Jersey’s economy while similar infrastructure continues to be built in neighboring states.
“We fully understand the sponsor’s concerns with recent rate increases, in part due to the demand created by data centers in the PJM region,” Cantor said. “However, we believe the answer to the capacity issues is not to discourage new demand, and thus economic growth, but to encourage the development of more generation to accommodate that growth.”
NJBIA offers advocacy and resources for businesses throughout New Jersey and works with government entities and educational institutions to support member prosperity (source). Its headquarters are located in Trenton (source), and Michele Siekerka serves as president and chief executive officer (source).
