Committee releases measure to encourage transmission-scale energy storage after contested hearing

The Senate Budget and Appropriations Committee on June 9 favorably released a committee substitute for S4289, legislation that would direct and incentivize procurement of transmission-scale energy storage in New Jersey.

Supporters — including clean-energy trade groups, developers and industry consultants — told the committee storage could lower capacity market costs and provide system reliability. Pamela Frank of American Clean Power presented modeling that estimated savings to ratepayers between about $98 million and $200 million per year from adding significant storage capacity. "We need a lot of energy storage in New Jersey. It's an investment that yields benefits for all of us," Frank said.

Opponents and some committee members cautioned that the analysis driving the bill’s benefits needed closer review. The ratepayer advocate and some members urged a study to determine whether the policy would raise or lower costs for consumers. Senator Scanlon said a study would be prudent and described the proposal as an attempt to address perceived planning shortfalls by the administration.

Why it matters: proponents say transmission-scale storage helps integrate renewables, reduce capacity-auction costs and improve reliability; skeptics said uncertainties in modeling and auction outcomes create a risk that costs could increase for ratepayers.

The committee substitute was moved and released after extended discussion. Senators raised questions about PJM market mechanics and recent capacity procurement developments, including federal interventions that kept certain fossil units online during a local shortfall. The committee recorded a favorable release; the bill will move to further legislative consideration.

Discussion vs. decision: committee action was release with a committee substitute; members asked for additional analysis and dialogue with the Board of Public Utilities and other agencies before floor action.