A bill that would require electric public utilities in New Jersey to create and submit a tariff for certain data centers has moved forward in the Assembly Telecommunications and Utilities Committee.
The proposed legislation, Bill A-796 (Bailey, D-3), targets data centers with a maximum monthly demand of at least 100 megawatts. If enacted, the bill would direct utilities to develop tariffs that protect non-data center customers from any increased costs resulting from higher electricity demand due to data centers. It also seeks to encourage data centers to use energy-efficient technologies, including those that capture and reuse heat produced by their operations. Utilities would be required to apply the new tariff to each qualifying data center within their service area one year after the bill becomes law.
Initially, the New Jersey Business & Industry Association (NJBIA) opposed the bill because it allowed aggregation of facilities based on common ownership or control—even if each individual facility operated separately and did not meet the 100-megawatt threshold. NJBIA Director of Research Jack Ramirez explained, “For example, a company could have had 10 facilities across New Jersey, each using between eight and 10 megawatts per month. Individually, none of those facilities would qualify as a ‘large load’ customer.”
Following amendments clarifying that only data centers with an actual demand of 100 megawatts per month are included, NJBIA shifted its stance on the legislation. “The amended changes help clarify the policy and better protect ratepayers while still allowing innovation and business growth to move forward,” Ramirez said.
NJBIA is recognized as the nation’s largest statewide employer association representing private-sector employers across many sectors in New Jersey according to its official website. The organization works to advance its members’ competitive excellence and financial success by providing advocacy, information, partnerships with government entities and academic institutions, as well as cost-saving benefits according to its official website. Based in Trenton since its establishment in 1910, NJBIA is led by President and CEO Michele Siekerka according to its official website.
