Power Play NJ Releases Statement on Signing of S-731/A-796
New Jersey Governor Mikie Sherrill signed bill S-731/A-796 into law, which aims to hold large data centers accountable for their electricity costs. The legislation requires the Board of Public Utilities to establish a dedicated rate class for data centers, ensuring they cover the costs of serving their demand and do not shift burdens to residential and small business ratepayers. It also mandates financial guarantees from data centers for electricity supply and incentivizes energy efficiency.
New Jersey Governor Mikie Sherrill has signed bill S-731/A-796 into law, a measure designed to address the rising electricity costs attributed to the growing demand from large data centers in the state. The legislation, championed by Power Play NJ, aims to ensure that data centers bear the financial responsibility for their energy consumption rather than passing costs onto New Jersey families and small businesses.
The new law directs the Board of Public Utilities to create a dedicated rate class for large data centers. This class will ensure that the costs associated with serving these facilities, including any new generation, transmission, and distribution infrastructure built for them, are covered by the data centers themselves. Additionally, it requires large data centers to financially guarantee at least 85 percent of their requested electricity supply over a ten-year term, mitigating financial risk for ratepayers from speculative projects. The bill also promotes energy efficiency and the use of clean generation by rewarding facilities that invest in such practices and provides the grid with tools to manage data center electric demand during emergencies.