Senate panel advances bill to pilot thermal energy networks despite ratepayer concerns
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Summary
The Senate Environment and Energy Committee released S684 to establish a multi-regional thermal-energy pilot, broadened from geothermal to all thermal technologies; the bill won unanimous committee support despite opposition from the New Jersey Division of Rate Counsel, which warned of costs to utility ratepayers.
The Senate Environment and Energy Committee on Monday voted to release S684, a bill establishing a pilot program that would allow gas utilities to develop and recover costs for thermal-energy networks, broadened in committee to include all thermal energy sources and technologies.
Chairman Smith summarized committee amendments that lengthen the pilot from three to four years, permit utilities to recover costs for more than one thermal-energy network project, authorize regionally allocated approvals, allow the Board of Public Utilities (BPU) to set a tariff for selling thermal energy to participating customers, and shorten some BPU reporting and implementation deadlines. "The amendments would expand the scope of the pilot program to include all thermal energy sources," staff counsel Eric said during the briefing.
Mara Caricelli, managing attorney at the New Jersey Division of Rate Counsel, testified in opposition. She told the committee the BPU is already studying large-scale geothermal under Public Law 2023, Chapter 328 and that the pending report should be reviewed before launching an additional pilot. "We are concerned about the significant financial impact on ratepayers," Caricelli said, urging the committee not to advance the bill unless it identifies funding other than utility customers.
Caricelli also said the bill was unclear on how construction and maintenance costs would ultimately be recovered and warned that customers joining a thermal network could face additional costs to install compatible appliances.
Chairman Smith and sponsors defended the measure as a necessary step to explore new clean-energy options and said limiting pilots would slow broader grid progress. After discussion, Senator Greenstein moved the bill and Senator Tiver seconded; the committee recorded yes votes from Senators Tyber, Space, Greenstein and Chairman Smith and released the bill unanimously.
What’s next: With the committee release, S684 moves to subsequent legislative steps where the BPU’s forthcoming study and any additional fiscal analyses will be considered.