A1551

An Act requiring the Board of Public Utilities to study advanced transmission technologies.

Whereas, Energy demand is projected to rise due to the buildout of data centers, population growth, increasing electrification, and growth in domestic manufacturing, among other factors; and

Whereas, The nation’s transmission infrastructure is aging and inadequate to accommodate the estimated 290 gigawatt backlog of energy generation projects sitting in PJM Interconnection, L.L.C.’s interconnection queue; and

Whereas, The lack of adequate transmission infrastructure contributes to grid congestion, which costs consumers nationwide an estimated $20.8 billion in 2022; and

Whereas, New high-voltage transmission infrastructure is critically needed but can take up to 10 years to complete; and

Whereas, Advanced transmission technologies can potentially offer a near-term, cost-effective way to meet growing energy demand, reduce grid congestion, and boost the capacity of existing transmission infrastructure; and

Whereas, Advanced transmission technologies can typically be deployed between three months and three years; and

Whereas, States across the nation have advanced bipartisan legislation and adopted policies to evaluate and promote the deployment of advanced transmission technologies to alleviate grid congestion, increase reliability and efficiency, and enhance grid capacity; and

Whereas, It is in the public interest for the Board of Public Utilities (board) to study advanced transmission technologies to evaluate their application and effectiveness in unlocking lower-cost generation resources, reducing grid congestion, and increasing transmission capacity for new generation; and

Whereas, It is also in the public interest for the board to study the potential to increase the efficiency, reliability, and safety of the electrical grid through the deployment of advanced transmission technologies; now, therefore,

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

1. a. As used in this section:

“Advanced transmission technologies” or “ATT” means software or hardware technologies that increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility, including: (1) grid enhancing technologies, such as dynamic line rating, advanced power flow controllers, and topology optimization; (2) advanced or high-performance conductors; and (3) other technologies designed to reduce transmission congestion or increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility.

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

“Electric public utility” or “utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users in the State.

b. The board shall conduct a study to evaluate the potential deployment of advanced transmission technologies by electric public utilities, which deployment shall enable the utilities to:

(1) safely, reliably, efficiently, and cost effectively meet electric system demand; and

(2) provide safe, reliable, and affordable electricity to its customers.

c. In conducting the study, the board shall:

(1) evaluate the attributes, functions, costs, and benefits of ATT. In evaluating the attributes of ATT, the board shall consider whether a particular technology:

(a) increases transmission capacity;

(b) increases transmission efficiency;

(d) reduces the curtailment of generation resources;

(e) increases system reliability;

(f) increases system resiliency; or

(g) increases the capacity to connect new energy generation resources or reduces capacity prices from new supply;

(2) evaluate the potential of each of the advanced transmission technologies studied for deployment by a utility to provide safe, reliable, and affordable electricity to utility customers, considering existing and planned transmission infrastructure and projected demand growth;

(3) identify potential reductions in an electric public utility’s transmission project costs and transmission project completion timelines by deploying ATT, as compared to traditional transmission infrastructure;

(4) identify potential ways to streamline the deployment of ATT, including streamlined processes for permitting, maintenance, and upgrades;

(5) evaluate policies and laws in other states that have deregulated energy sectors, which polices and laws concern ATT, and provide recommendations in accordance with the policies and laws to enable and encourage the adoption of ATT in this State;

(6) identify processes or ways that an end-use customer, such as an industrial or mercantile customer, can invest in and deploy ATT in partnership with their respective utility to allow for the more rapid deployment of ATT;

(7) identify how the board can support and encourage the implementation of ATT in New Jersey through future rulemaking or other board activities; and

(8) evaluate any other aspect of ATT that the board determines will assist policymakers, utilities, utility customers, and other stakeholders in understanding the potential role of ATT in the transmission system serving this State and the region.

d. Pursuant to the “Senator Byron M. Baer Open Public Meetings Act,” P.L.1975, c.231 (C.10:4-6 et seq.), the board shall give notice of a public stakeholder meeting and invite interested parties and members of the public to discuss the study required pursuant to this section. The board shall hold a minimum of two public stakeholder meetings to review comments from stakeholders. The board may incorporate any information or comments received from the public stakeholder meetings in its report required pursuant to subsection e. of this section.

e. Within one year after the date of enactment of this section, the board shall:

(1) submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, with the findings of its study conducted pursuant to this section; and

(2) publish the report on its Internet website.

2. This act shall take effect immediately and shall expire upon the submission of the report required pursuant to subsection e. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

STATEMENT

This bill requires the Board of Public Utilities (board) to study the potential deployment of advanced transmission technologies (ATT) by electric public utilities in the State. In conducting the study, the board is to: (1) evaluate the attributes, functions, costs, and benefits of ATT; (2) evaluate the potential of any ATT to enable an electric public utility to provide safe, reliable, and affordable electricity to its customers, taking certain factors into consideration; (3) identify potential reductions in an electric public utility’s transmission project costs and transmission project completion timelines by deploying ATT, as compared to traditional transmission infrastructure; (4) identify potential ways to streamline the deployment of ATT; (5) evaluate policies and laws in other states that have deregulated energy sectors, which polices and laws concern ATT, and provide recommendations in accordance with the policies and laws to enable and encourage the adoption of ATT in this State; (6) identify processes or ways that an end-use customer can invest in and deploy ATT in partnership with their respective electric public utility to allow for the more rapid deployment of ATT; (7) identify how the board can support and encourage the implementation of ATT in New Jersey; and (8) evaluate any other aspect of ATT that the board determines will assist policymakers, electric public utilities, electric public utility customers, and other stakeholders in understanding the potential role of ATT in the transmission system serving this State and the region.

While conducting the study, the board is required to give notice of a public stakeholder meeting and to invite interested parties and members of the public to discuss the study. The board is to hold at least two public stakeholder meetings to review comments from stakeholders.

In addition, the bill requires the board, within one year after the bill’s date of enactment, to submit a written report to the Governor and the Legislature with the findings of its study. The board is to publish the report on its Internet website.

Energy demand is projected to rise due to the buildout of data centers, population growth, increasing electrification, and growth in domestic manufacturing, among other factors. Simultaneously, the nation’s transmission infrastructure is aging and inadequate to accommodate the estimated 290 gigawatt backlog of energy generation projects sitting in PJM Interconnection, L.L.C.’s interconnection queue. To address the lack of adequate transmission infrastructure, which contributes to grid congestion, it is in the public interest for the board to study the potential to increase the efficiency, reliability, and safety of the electrical grid through ATT deployment.

Under the bill, “advanced transmission technologies” means software or hardware technologies that increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility, including: (1) grid enhancing technologies, such as dynamic line rating, advanced power flow controllers, and topology optimization; (2) advanced or high-performance conductors; and (3) other technologies designed to reduce transmission congestion or increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility.