Assembly Advances Energy Bills Aimed at Protecting NJ Ratepayers
Legislation seeks to control utility costs and promote energy innovation across New Jersey
TRENTON — Lawmakers in the New Jersey General Assembly advanced a package of energy-related bills last week designed to protect ratepayers, boost renewable power generation, and improve the long-term stability of the state's energy grid.
The legislative action—driven by Democratic lawmakers—includes measures to manage the energy demands of growing industries like artificial intelligence, expand the use of small nuclear reactors, and establish new rules for data centers and community solar projects.
Guardrails for Data Centers
One of the cornerstone bills, A5462, would require electric utilities to create special rate structures for large data centers—especially those tied to artificial intelligence—to prevent residential and small business customers from shouldering rising energy costs.
“If we’re not proactive, the growth of AI could cause everyday taxpayers and small businesses to pay the price,” said Assemblyman David Bailey Jr. (D-Gloucester, Salem, Cumberland). “This bill helps New Jersey prepare for that future while protecting affordability.”
Assemblymen Joe Danielsen and Clinton Calabrese, who also sponsored the bill, emphasized the need for balance between innovation and consumer protection.
“Data centers should not become a burden to ratepayers,” Danielsen said. “This legislation ensures that the costs of high energy demand are not passed on to everyday consumers.”
The bill also promotes energy efficiency by encouraging data centers to use heat-recapture technologies and reduce their overall environmental impact.
Preparing for an Energy Future
Mark Tyler
Several other bills passed as part of the session also aim to reshape New Jersey’s energy landscape:
- A4215 would direct the Board of Public Utilities (BPU) to regulate small modular nuclear reactors and encourage incentives through the state Economic Development Authority.
- A5267 requires the BPU to invest in large-scale energy storage systems that can stabilize the grid and support renewable power.
- A5517 calls for a feasibility study on developing advanced nuclear reactors statewide.
- A5768 would update targets for New Jersey’s community solar program.
Mark Tyler
Increased Oversight and Transparency
Other measures in the package seek to improve transparency and monitoring of utility operations:
- A5548 requires data centers to report water and energy usage.
- A5736 updates the “Energy Bill Watch” program’s notification process to ensure consumers are informed about bill changes.
- A5463 mandates that utilities report their corporate voting records to the BPU.
- AJR216, a joint resolution, calls for the BPU to investigate PJM Interconnection’s pricing model and explore options to increase affordability and reliability.
Impact on South Jersey
With energy costs rising throughout the region—including in South Jersey—the legislation could bring relief to residents in communities like Atlantic City, where affordability remains a top concern.
“This is about staying competitive while staying fair,” Calabrese said. “We can’t let innovation come at the expense of hardworking families.”
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