Data Center · Datacenter Dynamics
New Jersey lawmakers pass bill to establish large load data center tariff
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New Jersey lawmakers have passed a bill that will direct the state's Board of Public Utilities (PUC) to establish a dedicated data center tariff for facilities with a capacity of 50MW or more, in an attempt to shield other ratepayers from cost increases tied to new builds.
Key facts
- A similar bill was originally proposed in June of last year by Democratic assemblymen Dave Bailey and Joe Danielsen
- DCD explores ratepaying legislation in depth in their latest issue of DCD>Magazine — It will now head to Democratic governor Mikie Sherrill for final approval
- Other states to see similar rules proposed and passed include Ohio, North Carolina, and Virginia, to name a few
Summary
A similar bill was originally proposed in June of last year by Democratic assemblymen Dave Bailey and Joe Danielsen. Following the veto, the bill was replaced with S731, which proposed broader protections than the previous bill. The new bill is broader than the previously vetoed bill, applying to both existing and new facilities, and lowering the threshold from 100MW. Other provisions in the bill include requiring data centers to demonstrate their project is not proposed elsewhere to avoid speculative applications, providing financial guarantees to take or pay for at least 85 percent of the requested service for ten years, and committing to demand response and flexibility programs.