NJBIA President and CEO Michele Siekerka issued the following statement regarding energy bills signed into law on July 7 by Gov. Mikie Sherrill.
On bill A-2757 requiring transmission owners to join regional transmission organizations approved by Federal Energy Regulatory Commission:
“This new law recognizes the need for a change in policy, one that was initially created to foster new developments after the 2003 blackout. The policy and investments that followed have yielded strategic upgrades, improving reliability and reducing capacity constraints.
“Given current FERC regulations, this new directive is intended to result in better transmission planning and more efficient grid operations. However, mandating RTO membership in light of the current PJM regulatory governance may not result in meaningful benefit to ratepayers.”
“This policy change may not only affect existing investments, but challenge long-term investment in needed utility infrastructure. And we know that for long-term investments to be made, companies need predictability, reliability and consistency. We have said time and time again that policy shifts and changing the rules of engagement mid-stream can and oftentimes does disrupt business models."
On bill A-796 requiring New Jersey electric public utilities that have a maximum monthly demand of at most 50 megawatts to develop and submit to the Board of Public Utilities (BPU) a tariff for certain data centers.
“While we understand Governor Sherrill’s prioritization of an affordability agenda and rising energy bills are of great continuing concern; we don’t believe a tariff on an emerging industry is the answer.
“This is especially the case when it is not as clear as some data center critics contend that data centers are the major driver of utility rate increases.
“To ensure New Jerseyans are equipped with all the facts, later this month, NJBIA is releasing a report setting the record straight on AI data centers in New Jersey as it relates to economic and environmental impact. The report touches on tax and job impacts, energy costs, regulatory transparency, community impacts and policy recommendations the business community and government can agree works for everyone.”
