ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 796

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 19, 2026

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 796 (1R).

      As amended, this bill requires each electric public utility in the State to develop and submit to the Board of Public Utilities (BPU) a tariff for large load data centers, i.e., data centers with a peak electricity demand of 100 megawatts or more.

      The bill requires the tariff to be designed to:  (1) ensure that other electric public utility customers do not subsidize large load data centers and all costs attributable to the electric public utility’s large load data center customers are assigned to the large load data centers; (2) contain protections necessary to ensure that other electric public utility customers are not placed at risk for paying stranded costs associated with the electric public utility serving a large load data center; and (3) incentivize large load data centers to develop and utilize methods to increase energy efficiency, including through the use of technologies that capture and utilize the heat produced by the large load data center.  Beginning one year after the bill’s enactment, an electric public utility is to apply the tariff to each large load data center located in the electric public utility’s service area.

      The bill also provides that all rates, terms, and conditions established by the BPU for large load data centers are to reasonably protect other electric public utility customers against increased costs resulting solely or primarily from serving large load data centers.  The bill requires the BPU to impose certain requirements on electric public utilities to protect other electric public utility customers, including ensuring that any new large load data center provides adequate financial guarantees that the large load data center will pay for at least 85 percent of service requested for a period of not less than 10 years from when service commences.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill:

      (1)  provide that the bill’s provisions would apply only to large load data centers, rather than to all large load electricity customers;

      (2)  authorize the BPU to utilize transmission security agreements and other measures to address increased electricity transmission costs attributable to data centers; and

      (3)  make technical and clarifying changes.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.