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Assembly panel backs bill directing BPU to limit rate risk from large data-center load
Summary
The committee amended and released a bill that directs the Board of Public Utilities (BPU) to create rules and tariffs protecting ratepayers from cost increases tied to large-load data centers (100 MW+), sparking debate over economic development, grid impacts, and interconnection rules within PJM.
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…
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