New Jersey Seeks Public Input on Rules Requiring Data Centers to Cover Grid Costs
New Jersey regulators are developing rules under the Data Center Fair Share Act to ensure large data centers pay for their grid connections, system upgrades and electricity commitments rather than shifting costs to other ratepayers. The state Board of Public Utilities is accepting public comments through Nov. 13 and held a virtual stakeholder meeting on the proposed standards.
New Jersey’s Board of Public Utilities is writing rules to implement the Data Center Fair Share Act, signed by Gov. Mikie Sherrill on July 7. The law requires large data center customers to cover grid-connection and system-upgrade costs, provide financial guarantees for at least 85% of requested electricity over 10 years, and reduce consumption before residential customers face emergency reductions.
The BPU is seeking input on how to define a large data center, calculate guarantees for facilities that ramp up gradually, address early closures and prevent developers from avoiding the rules by grouping facilities under common ownership or infrastructure. Written comments are due Nov. 13, while the agency’s standards must also account for a Federal Energy Regulatory Commission decision rejecting a proposed PJM Interconnection framework.