Sherrill Signs Legislation Tackling Energy Costs, Data Center Power Demand
Governor Mikie Sherrill signed an "energy affordability" package into New Jersey law, including legislation that imposes tariffs on large data centers and requires them to cut back power during grid strain before residential ratepayers. This initiative aims to lower electricity costs for residents and leverage data center investments to strengthen the grid. The New Jersey Business & Industry Association opposes these tariffs, arguing they are not an effective solution to rising energy bills.
Governor Mikie Sherrill of New Jersey signed an "energy affordability" package into law, which includes an immediate $90 million in ratepayer relief and significant reforms to address rising electricity costs. The legislation, signed at the Salem County home of Eileen Bailey, aims to prioritize residential ratepayers over large industrial users.
A key component of the package is a controversial bill that imposes tariffs on large data centers, creating a new ratepayer class for them. Governor Sherrill stated that this bill requires data centers to cover their own costs and cut back power during grid strain before residential customers. She emphasized using data center investments to strengthen the grid and reduce family costs, contrasting with previous policies that she argued subsidized "big tech."
The package also includes bills to eliminate incentives for utilities' voluntary membership in the regional grid operator PJM, expected to save customers up to $60 million annually, and to tighten oversight on utility infrastructure investments that expand capacity. NJBIA President and CEO Michele Siekerka criticized the tariffs, arguing they are not the correct solution to energy affordability and that data centers are not the primary cause of utility rate increases.