Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
SYNOPSIS
Requires electric public utilities to submit new tariffs for commercial customers for BPU approval; regulates non-volumetric electricity fees charged to operators of fast charging electric vehicle chargers.
CURRENT VERSION OF TEXT
As amended by the General Assembly on December 7, 2023.
An Act concerning the provision of electric power to electric vehicle charging stations and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Board" means the Board of Public Utilities.
1"Capacity demand charge" means the charge for generation and transmission service that is recovered based on a customer's energy use, measured in kilowatts, during a time of peak energy demand.1
"Direct current fast charging facility" means a location that provides commercial access to a DC fast charger, as that term is defined in section 2 of P.L.2019, c.362 (C.48:25-2).
1"Distribution demand charge" means the charge for distribution service that is recovered based on a customer's energy use, measured in kilowatts, during a time of peak energy demand.1
"Electric public utility" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
"Load factor" means the quotient of the 1amount of1 electrical energy consumed in a designated time period and the 1[hypothetical]1 maximum 1rate of1 energy use in that time period, determined by multiplying the peak demand rate by the duration of the time period.
b. No later than 180 days after the effective date of this section, each electric public utility shall file an application with the Board of Public Utilities to establish a tariff for the provision of electricity to commercial customers. The tariff shall be designed to:
(1) utilize alternatives to both 1[traditional demand-based rate structures] distribution demand charges1 and capacity demand charges;
(2) establish cost 1[equity] parity1 between commercial electric vehicle tariffs and residential tariffs; 1and1
(3) remain neutral with respect to the various types of electric vehicle charging technology 1[;
(4) accelerate third-party investment in electric vehicle charging infrastructure for light-, medium-, and heavy-duty vehicles; and
(5) promote electric vehicle adoption in the State] , provided that this neutrality would not have the effect of discouraging innovation1 .
c. A tariff developed pursuant to this section shall include an alternative rate structure, which does not utilize 1capacity or distribution1 demand charges, for commercial customers who own or operate electric vehicle charging systems. The tariff shall not obligate a customer to furnish additional data collection as a condition of service 1[beyond what can be obtained from the customer’s electric meter] to the public utility1 . Each tariff shall provide predictable effective cost per kilowatt-hour delivered over a range of load factors. Rates for electric distribution in the tariff shall be designed to encourage investment in faster, higher-powered electric vehicle charging facilities and shall include comparable costs per megawatt hour for both higher-power and lower-powered direct current fast charging facilities.
d. The board shall expeditiously review, pursuant to the provisions of section 7 of P.L.1999, c.23 (C.48:3-55) and the rules or regulations adopted pursuant thereto, each application submitted pursuant to this section, and shall approve the application if the board determines that it complies with the requirements of this section and all other applicable laws, rules, and regulations.
e. 1The board may require a customer, as a condition of utilizing an alternative rate structure developed pursuant to subsection c. of this section, to provide the board with quarterly data in accordance with federal National Electric Vehicle Infrastructure program rules at 23 C.F.R. s.680.112.
f.1 Notwithstanding the provisions of a tariff in effect on the effective date of this section, commencing 1[60] 1801 days after the effective date of this section, 1[an electric public utility shall not assess a demand charge, subscription charge, or other non-volumetric tariff structure on a direct current fast charging facility,]1 unless the board has approved the utility's tariff application submitted pursuant to this section, 1[and only to the extent that the approved tariff utilizes such a non-volumetric structure] an electric public utility shall:
(1) discontinue assessing capacity and distribution demand charges on direct current fast charging facilities; or
(2) implement an operating cost relief mechanism that utilizes demand charge alternatives, is technology neutral, accelerates third-party investment in electric vehicle charging infrastructure, and promotes electric vehicle adoption in the State1 .
2. This act shall take effect immediately.