The Assembly Telecommunications and Utilities Committee on June 25 amended and released legislation (AB 5462) directing the Board of Public Utilities to develop rules limiting how large-load data centers affect rates and to authorize data-center–specific tariffs for large customers. Supporters said the measure protects ratepayers from paying for stranded transmission or capacity investments if data-center load fails to materialize; opponents said tariffs risk driving investment out of New Jersey and undermining economic development.

Abe Silverman, research scholar at Johns Hopkins and former general counsel at the New Jersey Board of Public Utilities, told the committee that projected data-center growth in PJM could add 18–55 gigawatts by 2030 (FERC estimates cited) and that states are adopting approaches requiring data centers to put down deposits or take long-term service commitments. "There is a cost to community solar, and the board needs some authority to ensure that this significant increase will not be too large a burden on ratepayers," he said in a related session; on data centers, he said state-specific tariffs help allocate risk to developers rather than retail customers.

Proponents, including the bill's sponsor, emphasized guardrails: developers would be asked to commit to taking at least 85% of requested service for a 10-year period or provide financial security to cover stranded costs; the bill allows the BPU to relax requirements if developers provide grid benefits such as on-site generation or operational flexibility. "This will protect the rate payer from footing the bill for stranded transmission infrastructure built to service data centers that never materialized," the sponsor said.

Opponents — including the New Jersey Business & Industry Association and private-sector witnesses — warned that new tariffs or requirements could push data-center developers to neighboring states within PJM and cited examples of major investments in Virginia and elsewhere. Jack Ramirez of the NJBIA said tariffs could "turn away these centers from our state to a more competitive and better environment such as Virginia, Pennsylvania, and New York."

The committee recorded roll-call votes: Assemblyman Kenitra abstained; several members opposed; the bill was released after amendments (vote recorded on the transcript). The committee directed sponsors to provide clarifying information on pilot-project funding and the scope of any pilot programs; earlier testimony noted $500,000 had been appropriated previously for study and $300,000 remained.

The bill defines "large load data center" and gives the BPU authority to set tariffs and impose requirements on utilities to prevent rate increases for non–data-center customers. The committee's action is intended to create a regulatory framework that keeps developers accountable while allowing New Jersey to host data centers without shifting long-term infrastructure risk to residential and small-business ratepayers.