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S4062
SENATE, No. 4062
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 23, 2026
Sponsored by:
Senator� BOB SMITH
District 17 (Middlesex and Somerset)
Senator� ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
���� Establishes certain protections against demand by
large-load addition customers in State.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
establishing certain protections against demand by
large-load addition customers in the State and supplementing Title 48 of the
Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in
P.L. , c.
(C. ) (pending before the
Legislature as this bill):�
���� �Board� means the New Jersey
Board of Public Utilities or a successor agency.
���� �Electric public utility�
means the same as that term is defined in section 3 of P.L.1999, c.23
(C.48:3-51).
���� �Large-load addition customer�
means individual additions of load at or above 50 MW at a single point of
interconnection.
���� �Load-serving entity� means an
entity, or the duly-designated agent of the entity, including a load aggregator
or power marketer, that serves end-users within the State and is authorized to
sell electric energy to end-users located within the State.
���� �PJM Interconnection, L.L.C.�
or �PJM� means the same as that term is defined in section 3 of P.L.1999, c.23
(C.48:3-51).
���� �Reliability backstop
procurement� means a PJM-approved mechanism to procure long-term contracts from
new capacity resources, however constituted, deemed necessary to ensure
electric system reliability during periods when market-based outcomes are
insufficient to meet forecasted needs.
���� 2.��� When issued a
curtailment obligation or directive from PJM due to a load-serving entity�s
provision of service to a large-load addition customer, the load-serving entity
shall impose PJM�s curtailment obligation or directive solely on the
load-serving entity�s large-load addition customers.� However, nothing in this
section shall be construed to prevent a load-serving entity from taking necessary
action to maintain system reliability and adopting voluntary load curtailment
programs.
���� 3.��� Any financial or other
obligation associated with the reliability backstop procurement, or other
comparable assignment of long-term capacity obligations, that is assigned to a
load-serving entity shall be passed through to large-load addition customers under
substantially-similar terms as PJM assigns the financial or other obligations
to the load-serving entity.
���� 4.��� In order to receive
electric public utility service from an electric public utility in the State, a
large-load addition customer shall:� provide appropriate financial security in
a manner approved by the board, to either the load serving entity or the
electric public utility, as appropriate, to ensure that costs associated with reliability
backstop procurement are not passed through to other New Jersey customers, if
the large-load addition customer�s demand on the electrical grid necessitates
reliability backstop procurement through PJM; and submit detailed information
to PJM, including, but not limited to, expected load usage, peak load,
utilization, dependency on other proposed projects, and any other information
requested by PJM.
���� 5.��� The board shall, in
accordance with the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the
provisions of this act, including the form of the appropriate financial
security pursuant to section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� 6.��� This act shall take
effect immediately.
STATEMENT
���� This bill prohibits certain
costs and obligations related to the large load addition customers from being
passed to non-large load addition customers.
���� The regional grid operator for
the State, PJM Interconnection, L.L.C. or PJM, has been developing options for
new load customers whose electricity demand can be curtailed in times of system
need.� Further, PJM has engaged stakeholders in a proposal for creating a reliability
backstop procurement auction that is to procure long-term energy contracts from
new capacity resources.
���� Under the bill, when issued a
curtailment obligation or directive from PJM due to a load-serving entity�s
provision of service to a large-load addition customer, the load-serving entity
is required to impose PJM�s curtailment obligation or directive solely on the
load-serving entity�s large-load addition customers.� However, the bill does
not prevent a load-serving entity from taking necessary action to maintain
system reliability and adopting voluntary load curtailment programs.
���� Additionally, the bill
requires any financial or other obligation associated with reliability backstop
procurement, or other comparable assignment of long-term capacity obligations, that
is assigned to a load-serving entity to be passed through to large-load
addition customers under substantially-similar terms as PJM assigns the
financial or other obligations to the load-serving entity.
���� Finally, under the bill, in
order to receive electric public utility service in the State, a large-load
addition customer is required to:� (1) provide appropriate financial security
to either the load serving entity or the electric public utility, as
appropriate, to ensure that costs associated with reliability backstop
procurement are not passed through to other New Jersey customers, if the
large-load addition customer�s demand on the electrical grid necessitates
reliability backstop procurement through PJM; and (2) submit detailed
information to PJM as outlined in the bill.