Latest news with #BoardofPublicUtilities
Yahoo
7 hours ago
- Business
- Yahoo
N.J. Dem senators call for probe of grid operator as electric prices surge
Democratic senators want grid operator PJM investigated. Republicans say the Murphy administration is to blame for high electric prices. (Dana DiFilippo | New Jersey Monitor) State senators sparred on the chamber's floor Monday over a resolution directing New Jersey energy regulators to launch an investigation of the state's grid operator, one day after steep electricity price hikes took effect. The resolution, which passed in a 25-12 vote along party lines and must still be approved by the Assembly, calls on the Board of Public Utilities to investigate PJM Interconnection's capacity market auction, a price-setting auction that saw a nearly tenfold increase over the previous sale last July. Democrats have sought to pin the blame on the rise in electricity bills on PJM, arguing it was too slow to connect renewable projects to its grid, thereby depressing supply and pushing prices upward. In some cases, they've outright claimed PJM's process was corrupt. 'The problem begins and ends with a grid that doesn't work. We are not investing enough money in this grid. The grid is held together by chewing gum, toothpicks, and bobby pins,' said Sen. Bob Smith (D-Middlesex), who chairs the chamber's energy panel. 'So now anyone who wants to enter the grid has to get an approval for a connection, and in the case of New Jersey, for the last two-and-a-half years, we've had 79 projects in the queue that PJM would not approve.' Industry officials and experts have said electricity prices are rising because of an imbalance between supply and demand. Demand, which had been roughly stable for decades, is surging amid growing electrification and the rise of power-hungry artificial intelligence data centers. Meanwhile, New Jersey's own supply of electricity has fallen as the state shuttered fossil plants and renewable projects — chiefly offshore wind — struggled to get off the ground, leaving it more reliant on power imported through PJM's grid. Republican members have charged Gov. Phil Murphy's renewable-heavy energy agenda and reliance on offshore wind projects are responsible for the price surge. The offshore wind projects have stalled because of rising costs and opposition by the Trump administration. 'Experts pointed to a whole host of sources and culprits that have brought us here today, a place that was foreseeable and predictable. And now we want to limit the investigation to PJM?' said Sen. Tony Bucco (R-Morris), the chamber's minority leader. Some GOP members argued the Board of Public Utilities, which they charge is partly to blame for rising energy prices, was an inappropriate pick to conduct the probe. Sen. Bob Singer (R-Ocean) said there is some support for sunsetting the board. 'You've got to put the problem at the foot of those who created it. You've got to investigate those who created it, and you have to replace them if necessary,' Singer said. The Board of Public Utilities is the regulatory body charged with approving utilities' requests for rate increases. New Jersey's regulated utilities do not profit from the sale of electricity itself, but they are permitted to recoup the costs of their investments and some other costs at a markup, typically around 9.6%. PJM itself declined to comment on the resolution but said the current price spike was driven by a divergence between supply and demand. 'These higher prices are the result of a loss in electricity supply caused primarily by decarbonization policies that have led to an uptick in generator retirements, coupled with an unprecedented spike in electricity demand due largely to the advancement of data centers to power artificial intelligence, the electrification of vehicles and heating systems, and the onshoring of U.S. manufacturing,' said Dan Lockwood, a spokesperson for PJM. The Republicans said a special committee that held hearings on rising energy prices earlier in the spring should conduct the investigation, which they said should include a probe of the Board of Public Utilities. Democratic members argued the board has institutional and subject matter knowledge that would lend expertise to an investigation that might be absent under the special committee, though some said the panel should continue to play a role. Still, Sen. Paul Sarlo (D-Bergen), the chamber's budget chairman, questioned the regulatory agency's future. 'We ultimately should be part of the long-term solution, and I'm not sure if BPU should be part of the long-term solution under the next governor,' Sarlo said. Murphy leaves office in January. The Senate approved separate legislation Monday that would require the Board of Public Utilities to study data centers' impact on electricity prices after tabling a Republican attempt to amend it. That bill, which passed the Senate unanimously, now goes to Murphy's desk.
CBS News
3 days ago
- Business
- CBS News
New Jersey state senator introduces bills to combat high energy costs
A New Jersey state senator has introduced a series of bills to combat high energy costs as utility companies plan rate hikes that will increase bills as much as 20%. Sen. Britnee Timberlake held a press conference Friday, saying her constituents tell her they're being forced out of their homes because of high utility bills. "You have to account for the cost to heat and cool the home ... and these utility companies need to be stopped," she said. "People need the relief now" Timberlake says the Board of Public Utilities approved raising electricity rates by 17-20% starting in June. The Democrat is introducing a series of bills that in part call for a study of what she refers to as private companies that are monopolies, going back to 2020 energy levels, and placing a 2% cap on rate hikes every five years. "It needs to be fast-tracked because people need the relief now," Timberlake said. PSE&G said in a statement that the company "works hard to keep customer bills as low as possible while providing safe and reliable energy." They added both the demand for energy and cost are rising, and utility companies like PSE&G don't profit on the 17% increase. Timberlake's bills have made it through the Legislature. It remains to be seen if Gov. Phil Murphy or a future governor would sign them. CBS News New York reached out to the Board of Public Utilities but has not heard back. New Jersey residents describe difficult costs Tabetha Bassit, with Echoes Inc., says it costs $2,000 a month to light up her counseling center and the neighboring funeral home. "The more we absorb these costs, it creates a difficulty for us to offer free counseling," she said. East Orange resident Rev. Ella Johnson said her utility bill, which includes gas and electric, is out of control. "I have been a widow for 11 years, and it's not easy trying to maintain a home," East Orange resident Rev. Ella Johnson said. "The bills are not easy to pay because they can run anywhere from close to $600 in the month of January, and it gradually comes down." The 85-year-old wants to stay in the home she's been in for 56 years but says it's getting more difficult. "It is terrifying ... because not only do I have this to take care of, but I have other things to take care of as well," she said.
Yahoo
22-05-2025
- Business
- Yahoo
Senate panel backs bills targeting New Jersey data centers
A data center underconstruction in Utah. Utility and interconnection officials have cited power-hungry data centers as a major cause of growing demand for electricity. (Photo by) A Senate panel approved another series of bills meant to reduce the impact of electricity prices that are set to soar on June 1. The bills, which cleared the Senate Environment and Energy Committee in divided votes Thursday, would raise data centers' share of electricity costs, boost construction of energy storage, and create an automatic approval process for residential solar projects, among other things. Environmental groups hailed the data center legislation, which would create a separate rate-setting process within the Board of Public Utilities for data centers with maximum monthly demands of at least 100 megawatts, forcing them to pay for increases in energy costs as a result of data center load. 'This bill would not only provide an incentive for data centers to drive consumption down, but it would also protect ratepayers from shouldering the unfair burden of the cost,' said Jay Weisbond, a policy assistant for the New Jersey League of Conservation Voters. It would also require rates for data centers to include cost recoveries for transmission or distribution infrastructure needed for their operation. The separate rate-setting process contemplated in the bill would take effect one year after its passage. Utility and interconnection officials have cited power-hungry data centers as a major cause of the growing demand for electricity. Electricity prices are spiking as demand that had been largely level for decades surges, and New Jersey's in-state generation has faced stumbles as offshore wind projects set to deliver thousands of megawatts fail or are blocked by federal regulatory authorities. Republicans have blamed Gov. Phil Murphy's wind-heavy renewable energy agenda and the shuttering of existing fossil plants for auction-driven price spikes set to arrive June 1, while Democrats have sought to lay the increases at the feat of PJM Interconnection, the grid operator for New Jersey and 12 other states. Assembly Democrats are particularly anxious about rising utility bills, as all 80 Assembly seats are on the ballot this year (Democrats hold a majority in the chamber). Separate legislation would require quarterly reporting on data centers' energy and water usage. Business groups opposed both bills, warning they would push data centers into other states, including those on the same grid as New Jersey, 'We can't entice data centers to locate in New Jersey if we're going to continually be putting roadblocks in the way or making it more expensive or problematic to develop here in New Jersey,' said Ray Cantor, deputy chief government affairs officer for the New Jersey Business and Industry Association. Murphy and legislators have sought to encourage AI development in New Jersey, including through tax credits, hailing it in July 2024 as a 'transformative industry that will change lives and grow our economy.' The state would be better served by boosting electricity supply than by targeting large energy users, Cantor said, adding that manufacturing plants and even hospitals could run similar loads. Though some suggested expansions, witnesses were broadly supportive of a bill requiring the Board of Public Utilities to procure and incent large-scale energy storage projects, which store energy produced at times of low demand to ease strains on production when demand is high. Storage projects could start operating in the short term and would more quickly affect prices than other types of generation, they said. 'It doesn't have to wait in line for PJM Interconnection, which we know takes years. It can be interconnected locally. It can be permitted locally, so it's the fastest way to build,' said Lyle Rawlings, CEO of Advanced Solar Projects Inc. 'These projects, we're not talking about 2029 or 2030, we're talking about 2026 that these can be brought online.' Separate legislation would require the Department of Community Affairs to create an online permitting platform to algorithmically approve residential solar projects. Municipalities could use the platform or set up their own automated solar approval system. Supporters saw it as another method of quickly standing up new energy supply. 'Local solar can be a critical tool in meeting our energy needs, but only if we need it. While large-scale solar projects are important, they are often facing multi-year delays in the PJM interconnection queue. Local solar, on the other hand, can be rapidly deployed,' said Elowyn Corby, mid-Atlantic regional director of the Vote Solar Action Fund. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
05-05-2025
- Business
- Yahoo
Assembly lawmakers to weigh bills aimed at easing impact of electricity prices
Lawmakers are moving to defray the impact of surging electricity costs expected to raise monthly bills by about 20% beginning this June. (Dana DiFilippo | New Jersey Monitor) An Assembly panel on Monday will consider a spate of bills meant to ease the impact of electricity prices set to surge in June. Among the bills are measures that would alter how state regulators set profit margins for utilities, create training requirements for those regulators, and require the Board of Public Utilities to study the impact data centers have on electricity prices. 'We're not going to find a one-fix silver bullet that's going to solve the entire issue. It's going to need to be piecemeal,' said Assemblyman Avi Schnall (D-Ocean), a sponsor of one of the bills. We're going to have to find a little bit here and a little bit there and a little bit over there.' The hearing comes about a month before electricity prices are set to surge upward by roughly 20% as a result of price-setting auctions held in July and February. The increase could add approximately $25 to an average customer's monthly bill. Schnall's bill would require the Board of Public Utilities to use a stricter standard when setting utilities' return on equity rates — the rate at which they are allowed to profit on infrastructure and other investments. At present, most New Jersey utilities' return on equity rates hovers around 9.6%. Utility providers are not permitted to profit off the sale of electricity itself — they sell it to customers at cost — but they can recoup costs for other investments, including capital costs, that are typically passed directly along to consumers. The bill would require the BPU to approve the 'lowest reasonable' return on equity, rather than the fair and reasonable standard used under existing regulations. It's not clear how much the change would affect utility bills (parts of the measure would take effect months after being signed into law). 'More money going back to customers is more money going back to customers,' Schnall said. Other bills in the package would require utilities to return excess profits to ratepayers as a direct credit to future bills or through direct payments to customers who have unpaid bills or are enrolled in utility assistance programs. The BPU also sets revenue requirements for New Jersey utilities. Republican officials have blamed Gov. Phil Murphy's ambitious clean energy goals — and his focus on offshore wind projects that are now stalled under the Trump administration — for growing rates. Assemblyman Christian Barranco (R-Morris), an electrician by trade, panned most of the bills on the committee's Monday agenda, warning measures to limit utilities' profitability would limit their ability to attract the investment needed to upgrade their infrastructure. Barranco's comments echo concerns utility operators voiced at a legislative hearing on electricity prices in late April. He noted Jersey Central Power and Light had recently pared down a $930.5 million infrastructure investment plan by nearly 80% in a bid to keep rates down. 'That's what's going to be affected, that sort of investment — that sort of keeping up with the reliability of the infrastructure that we'd like to see in a first-world country like ours,' Barranco said. He praised a separate bill that would appropriate $5 million for the BPU to study the feasibility of small modular nuclear reactors statewide. One Republican member expressed cautious support for the bill package but warned that, while the bills could help control the cost of electricity in the long run, they would do little to relieve the short-term impact of surging prices. 'I think it's a package that is not going to help ratepayers anytime soon,' said Assemblyman Alex Sauickie (R-Ocean). He said Republican proposals to lower or suspend the societal benefits charge — a 3% surcharge on all New Jersey electricity bills — or exempt utility services from the state's sales tax would deliver more immediate relief. Democrats have said that PJM Interconnection, the grid operator for New Jersey, 12 other states, and the District of Columbia, is to blame for the rate spikes because the interconnector has been slow to add some renewable projects to its grid. Utility prices may become an even more pressing concern for low-income New Jerseyans in the next federal fiscal year. President Donald Trump has proposed zeroing out just over $4 billion in funding for a low-income home energy assistance program. 'The Budget proposes to end this program and to instead support low-income individuals through energy dominance, lower prices, and an America First economic platform,' the Trump administration said in a budget document released Friday. New Jersey received nearly $133 million in awards under the program, which is meant to provide heating and cooling assistance to households making no more than 60% of the state's median income. That cutoff was $92,108 for a four-person household in the current federal fiscal year. New Jersey Department of Community Affairs Commissioner Jacquelyn Suárez told state Senate lawmakers last week that she expected New Jersey to receive federal funds for the program approved for the current federal fiscal year, which runs through Sept. 30, but her department had not been told that the program would not be funded in the following federal fiscal year. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
19-03-2025
- Business
- Yahoo
NJ lawmakers advance legislation requiring new AI data centers to use clean energy
Though many New Jersey officials, especially Gov. Phil Murphy, are set on making the Garden State a leader in artificial intelligence development, some advocates and lawmakers have concerns about the energy needed to power that endeavor. A bill that cleared the state Senate Environment and Energy Committee on Monday afternoon would require AI data centers to source their energy demands with new, clean energy options and submit an energy usage plan to the Board of Public Utilities, or BPU. The legislation would not take effect until after at least half of the 12 other states in the PJM region — including Pennsylvania, Delaware and Maryland, plus Washington, D.C. — adopt similar requirements. PJM is the largest power grid distributor in North America. 'The point of this bill is to say, 'Yeah, we would love to have AI data centers in New Jersey, but don't put your cost of being here on our ratepayers. You should bring your own electric supply with you,'' said state Sen. Bob Smith, D-Middlesex, who chairs the Environment and Energy Committee. Nearly an hour of testimony on the bill included arguments from advocates both for and against it. Taylor McFarland of the Sierra Club thanked the committee leadership for taking up this issue because the 'rapid demand for data centers in New Jersey will lead to a massive energy demand straining the existing grid.' But Michael Egenton of the New Jersey State Chamber of Commerce said the state should be encouraging new industry sectors to open operations instead of 'placing hurdles, impediments, mandates and fines,' because that will ultimately lead to their opening in other regions. Earlier: NJ wants to be an artificial intelligence leader. Do we have the energy supply? Earlier this month, the state Senate Legislative Oversight Committee held a three hour meeting to discuss the needs of the state's energy infrastructure and where AI fit into that. Panelists from utility companies, distributors and others in the energy and artificial intelligence industries noted that the supply now is not able to meet the demand in New Jersey — which consumes more energy than the state generates — and that gap is expected to grow. State Sen. Andrew Zwicker, that committee's chair, put the energy usage of data centers into perspective by saying they already use 2% of the energy globally. "The environmental impact of AI is remarkable," he said. "Training a single large language model like OpenAI's ChatGPT consumes approximately 1,300 megawatt hours of electricity, the same amount used by 130 U.S. homes in a year." Zwicker went on to say New Jersey's goal should be to "foster AI, not resist it," and to learn what can be done. Last year, Murphy called for what he dubbed an "AI moonshot" — an effort to advance AI use and opportunities to put New Jersey at the forefront of new economic developments. Since that announcement, he has touted the state's partnership with Princeton University to create an AI innovation hub, and last summer he signed a law that will set aside tax breaks for businesses that collect more than half their revenue from artificial intelligence or use more than half their staff for that purpose. Businesses would be eligible for incentives worth up to $250 million. Industry leaders have already taken steps to secure the energy needed to support their operations. Microsoft announced that it had exclusively acquired all of the energy created at the newly reopened Three Mile Island nuclear power plant in Pennsylvania for its data centers. During Murphy's two terms, or since 2017, five power generation plants have shut down in New Jersey: four coal plants and the Oyster Creek nuclear power plant. In addition, Murphy's plans for offshore wind have fallen apart as the state has ended four solicitations for projects, with Orsted abandoning two projects and most of the bidders on the others walking away, particularly in the wake of President Donald Trump's executive order to freeze the issuance of new offshore wind permits. One offshore wind project remains in New Jersey: Atlantic Shores South, which has received all its federal approvals and is set to generate 2,800 megawatts as early as 2028. Natural gas and nuclear energy provided 90% of the state's total energy generation from 2011 to 2023. Residents are split on how the state produces energy overall, according to a Fairleigh Dickinson University poll released earlier this month. About a third of respondents each supported nuclear power or natural gas. Offshore wind was also popular when it was suggested to the poll's respondents. Other options, such as importing electricity from other states or not making investments in technology that would require more electricity, were unpopular. Katie Sobko covers the New Jersey Statehouse. Email: sobko@ This article originally appeared on NJ bill to require AI data centers to use clean energy
