NJBIA has expressed concerns about a new bill that mandates the state Board of Utilities (BPU) to procure and incentivize transmission-scale energy storage in response to increasing energy costs. The bill, known as A-5267, is set for a vote in the Assembly Telecommunications and Utilities Committee.
Ray Cantor, NJBIA Deputy Chief Government Affairs Officer, emphasized the need for a thorough analysis of energy storage issues and current New Jersey energy policies before investing significant funds into an initiative that may not effectively address the problem. "We are all looking for effective responses to recent increases in rates for electricity," Cantor stated. He stressed the importance of understanding why rates are rising and how best to lower them while enhancing grid reliability.
The proposed legislation requires BPU to establish a program aimed at developing transmission-scale energy storage systems with a capacity of at least 5 megawatts connected to the PJM transmission grid. The board would need to approve incentive awards totaling at least $60 million for the initial phase, funded by New Jersey’s Societal Benefits Charge (SBC).
Cantor questioned whether such incentives are necessary, noting past instances where appropriated funds were not expended by BPU. "Would giving the BPU even more money result in it getting expended?" he asked. He also raised concerns about using SBC funds for this purpose, pointing out potential impacts on other areas currently supported by these funds.
Last week, Cantor testified before BPU regarding updates to the state's 2024 Energy Master Plan, which continues to prioritize all-electrification policies despite affordability and reliability concerns. He argued that these issues should be addressed first before funding another program.
"Nothing in this bill encourages the development of new, natural gas-powered generation facilities," Cantor said. He advocated for high-efficiency and low carbon-emitting natural gas EGUs as a means to reduce energy costs and enhance grid stability.
Cantor concluded by suggesting that various options should be considered given existing market signals indicating ongoing projects in this area.
