ASSEMBLY TELECOMMUNICATIONS AND UTILITIES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5466

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 5, 2025

      The Assembly Telecommunications and Utilities Committee reports favorably and with committee amendments Assembly Bill No. 5466.

      As amended and reported, this bill directs the Board of Public Utilities (BPU) to carry out a study, within one year after the bill’s effective date, on the effect of electricity usage by data centers on electricity costs in the State.

      The bill contains certain specific items to be studied by the BPU, including an estimate of the portion of the average residential electricity rate in New Jersey that will be attributable to the demand imposed by data centers in the next 20 years, assuming a range of likely scenarios concerning the number of data centers in the region where PJM operates.  The bill also requires the BPU to assess various policies that could be used to mitigate or avoid rate increases in New Jersey caused by increased electricity demand by data centers in the region where PJM operates, including the use of a special tariff to be applied to data centers within the State.  The bill requires the BPU to submit a report that presents the findings of the study to the Governor and the Legislature within 15 months after the bill’s effective date.

COMMITTEE AMENDMENTS:

      The committee amended the bill to clarify that BPU is required to study the effect of electrical usage by data centers in the region where PJM operates on electrical costs in New Jersey.  The committee also made technical changes to the bill.