A6040

An Act concerning electric public utility rates for certain data centers and supplementing Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Board” means the New Jersey Board of Public Utilities or a successor agency.

“Electric public utility” or “utility” means the same as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Large load data center” means a facility that: (1) primarily stores, manages, and processes digital data; (2) is used to house computer and network systems, including associated components such as servers, network equipment and appliances, telecommunications, and data storage systems, systems for monitoring and managing infrastructure performance, Internet-related equipment and services, data communications connections, environmental controls, fire protection systems, and security systems and services; and (3) has, or is projected to have, a monthly demand of at least 50 megawatts.

2. a. Notwithstanding any law, rule, regulation, or order to the contrary, an electric public utility that services large load data center customers shall file with the board an updated schedule of tariffs for approval, which schedule shall include a surcharge for large load data center customers to be applied during periods of peak demand on the electrical grid.

b. An electric public utility shall transfer to the board all monies collected from the surcharge established pursuant to subsection a. of this section, which monies shall be deposited by the board into the “Grid Modernization Fund” established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

3. a. There is established in the Board of Public Utilities a special, nonlapsing fund to be known as the “Grid Modernization Fund.” The fund shall be administered by the board and shall be credited with:

(1) monies deposited into the fund by the board pursuant to subsection b. of this section;

(2) monies that are appropriated by the Legislature; and

(3) any return on investment of monies deposited in the fund.

b. Each year, the board shall deposit into the fund the full amount of any monies collected from the surcharge paid by each large load data center customer to its electric public utility pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Monies in the fund shall be used by the board solely for the purpose of funding efforts to modernize New Jersey’s electrical grid.

4. The board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, rules and regulations establishing a process and timeline for electric public utilities to transfer to the board any surcharge monies collected from large load data center customers pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately.

STATEMENT

This bill requires each electric public utility that services a large load data center customer (customer) to establish a surcharge, to be approved by the Board of Public Utilities (board), for such customers to be paid during periods of peak demand on the electrical grid. An electric public utility is required to transfer to the board any monies collected from such surcharge payments for deposit into the “Grid Modernization Fund” (fund) established by the bill. The bill requires the board to use monies in the fund for the sole purpose of funding efforts to modernize New Jersey’s electrical grid.

Under the bill, “large load data center” means a facility that: (1) primarily stores, manages, and processes digital data; (2) is used to house computer and network systems, including associated components such as servers, network equipment and appliances, telecommunications, and data storage systems, systems for monitoring and managing infrastructure performance, Internet-related equipment and services, data communications connections, environmental controls, fire protection systems, and security systems and services; and (3) has, or is projected to have, a monthly demand of at least 50 megawatts.