The New Jersey Board of Public Utilities (NJBPU) has issued a Request for Information (RFI) to the state’s four Electric Distribution Companies—Atlantic City Electric, Jersey Central Power & Light, Public Service Electric & Gas, and Rockland Electric Company. The move aims to explore ways to modernize the electric grid and accelerate the integration of distributed energy resources (DERs).
This RFI is in response to Governor Mikie Sherrill’s Executive Order No. 2, signed on January 20, 2026. It directs utilities to submit comprehensive written responses within 30 days addressing compliance with interconnection regulations, opportunities for efficiency improvements, and strategies to support DER development on circuits with limited capacity.
“Addressing interconnection challenges is critical to lowering costs and getting clean energy online faster,” said Christine Guhl-Sadovy, President of the New Jersey Board of Public Utilities. “This RFI is the first step toward meeting Governor Sherrill’s Executive Orders and advancing grid modernization in New Jersey.”
The state faces increased electricity demand from data centers across New Jersey and the PJM Interconnection region. This demand has contributed to higher electricity rates locally and nationally. To address affordability concerns for residents and businesses, there is an urgent need for new generation and capacity resources.
Historically a net importer of electricity, New Jersey now seeks to increase in-state energy generation through DERs such as solar photovoltaic systems and energy storage systems. These can connect directly to local distribution grids but are often limited by hosting capacity constraints on key circuits. Hosting capacity refers to how much DER can be accommodated without affecting safety or reliability; it can be improved with infrastructure upgrades like substation enhancements or advanced inverter technology.
The NJBPU has adopted amendments at N.J.A.C. 14:8-5 governing interconnection requirements as part of its efforts to expand DER integration. Governor Sherrill’s order instructs the board to ensure these rules are fully implemented while seeking further opportunities for streamlining.
The RFI asks utilities to address five main areas:
– Compliance with current interconnection regulations, including implementation of pre-application processes.
– Opportunities for modifying or waiving existing regulations.
– Strategies for improving hosting capacity maps and monthly updates on access to higher-voltage distribution lines.
– Identification of constrained or unreliable circuits that should be prioritized for upgrades.
– Plans for integrating energy storage systems using smart inverter functions and flexible protocols.
Utilities must submit their responses by March 5, 2026.
According to the official website of the New Jersey Board of Public Utilities, the agency provides regulatory oversight across all utility services statewide—including electricity—and works toward ensuring safe, reliable, and affordable service for residents and businesses. The board consists of five commissioners appointed by the governor and confirmed by the Senate.It supports policies promoting clean energy goals as well as renewable portfolio standards.It also oversees consumer protection programs while supporting broadband infrastructure throughout New Jersey.
Public comments related to this RFI should be filed under Docket No. QO24030199.
About NJCEP:
The New Jersey Clean Energy Program (NJCEP), created in 2003 under EDECA legislation, offers incentives for installing high-efficiency or renewable technologies in homes, businesses, and schools across the state.
About NJBPU:
The NJBPU operates as a state agency responsible for ensuring safe utility services at reasonable rates.It regulates electric, natural gas, water, wastewater, telecommunications, and cable television services statewide.
