S2189

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 cost 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 electric 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 or high-performance conductor” means a conductor that has a direct current electrical resistance at least 10 percent lower than existing conductors of a similar diameter, while simultaneously increasing capacity by at least 75 percent on the system, and may increase system capacity in a number of ways, including, but not limited to, being incorporated into existing grid infrastructure and rebuilding support structures or other associated facilities.

“Advanced power flow control technology” means any software or hardware technology used to push or pull electric power in a manner that balances overloaded lines and underutilized corridors within the electric distribution or transmission system.

“Advanced reconductoring” means the application of advanced conductors to increase the capacity and efficiency of the existing electric grid.

“Advanced transmission technology” or “ATT” means any software or hardware technology that increases the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility, including: (1) grid enhancing technology; (2) advanced or high-performance conductors; and (3) other technology 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.

“Dynamic line rating” means any software or hardware technology used to appropriately update the calculated thermal limits of existing distribution or transmission lines based on real-time and forecasted weather conditions.

“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.

“Grid enhancing technology” means any software or hardware technology that enables enhanced or more efficient performance from the electric distribution or transmission system, including, but not limited to, advanced reconductoring, dynamic line rating, advanced power flow control technology, topology optimization, and energy storage when used as a distribution resource.

“Topology optimization” means any software or hardware technology that identifies reconfigurations of the electric distribution or transmission grid and can enable the routing of power flows around congested or overloaded distribution or transmission elements.

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 renewable energy and zero-carbon generation resources;

(e) increases system reliability;

(f) increases system resiliency;

(g) increases the capacity to connect new renewable energy and zero-carbon generation resources and reduces capacity prices from new supply;

(h) reduces the risk of igniting wildfires, by means of investments that are consistent with the utility’s approved wildfire mitigation plan; and

(i) increases flexibility to reduce risks surrounding technology and permitting uncertainties in Statewide electrical system planning and to improve optionality for load-serving entities;

(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) evaluate the potential of each of the advanced transmission technologies studied for deployment by a utility to identify locations prone to grid congestion, mitigate the congestion at these locations, and maximize the cost-effectiveness of delivery of energy resources in the near term, including:

(a) identifying locations within the electrical transmission system where grid congestion has occurred for at least 50 hours per year or more during the last three years or is likely to occur during the next five years due to planned transmission outages or other factors;

(b) estimating the frequency of congestion at each location and the increased cost to ratepayers resulting from the substitution of higher-priced electricity; and

(c) evaluating the technical feasibility and cost-effectiveness of installing one or more advanced transmission technologies to address each instance of grid congestion identified;

(4) 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;

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

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

(7) 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;

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

(9) 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, considering certain factors outlined in the bill; (2) evaluate the potential of each ATT to enable an electric public utility to provide safe, reliable, and affordable electricity to its customers, considering existing and planned transmission infrastructure and projected demand growth; (3) evaluate the potential of each of the advanced transmission technologies studied for deployment by a utility to identify and mitigate grid congestion in order to maximize the cost-effectiveness of delivery of energy resources in the near term; (4) 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; (5) identify potential ways to streamline the deployment of ATT; (6) evaluate policies and laws in other states that have deregulated energy sectors, which polices and laws concern ATT, and provide recommendations, taking into consideration such policies and laws, to enable and encourage the adoption of ATT in this State; (7) 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; (8) identify how the board can support and encourage the implementation of ATT in New Jersey; and (9) 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 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.

Under the bill, “advanced transmission technology” means any software or hardware technology that increases the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility, including: (1) grid enhancing technology; (2) advanced or high-performance conductors; and (3) other technology designed to reduce transmission congestion or increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility.