This story was originally published by NJ Spotlight News, a content partner with South Jersey Climate News.
New Jersey regulators set a deadline for four electric companies to submit their plans to modernize the supply grid, bring new power sources online and ultimately lower energy costs.
The state Board of Public Utilities on Wednesday issued a request for information to PSE&G, JCP&L, Atlantic City Electric and Rockland Electric Company, giving a 30-day deadline. The BPU itself was directed to seek the information in an executive order signed by Gov. Mikie Sherrill during her inaugural address.
The power grid operated by PJM Interconnection, which serves New Jersey and 13 other states, is facing soaring demand amid a regional boom in construction of power-hungry data centers. The PJM system lacks capacity to meet projected need, an imbalance that has led to rate spikes, most recently in June, when bills rose an average 20%.
Democratic leaders in New Jersey and other states have blamed PJM for moving too slowly to allow new sources of clean energy, especially large-scale solar, to connect to the grid. PJM, based in Audubon, Pa., says it warned officials for years about a potential crisis and notes its compliance with Federal Energy Regulatory Commission rules.
New Jersey uses more electricity than it produces, and the BPU and the Sherrill administration anticipate that the request for information may be a step toward boosting supply. The regulator is asking the utilities how they intend to handle interconnection issues and bring new energy sources online.
“Addressing interconnection challenges is critical to lowering costs and getting clean energy online faster,” Christine Guhl-Sadovy, president of the BPU, said in a statement.
The companies told NJ Spotlight News they were looking forward to working with regulators.
The state’s largest utility, PSE&G, with 2.4 million electricity customers, expects to find “workable solutions,” according to a statement from Alyana Alfaro Post, a spokesperson for PSE&G parent PSEG.
“PSEG believes that steps must be taken to safeguard long-term energy reliability and cost effectiveness for residents as New Jersey relies on imported electricity for more than 40% of its power, which is only expected to grow as demand increases,” she said.
Joshua Natoli, a spokesperson for Rockland Electric Company, said the utility, with about 75,000 customers in North Jersey, is “acutely aware of energy affordability concerns” and looks forward to working with the Sherrill administration.
JCP&L, which services 1.1 million customers in 13 counties, is “working every day to keep electric bills affordable while also making the investments needed to provide the reliable power communities count on,” Chris Hoenig, a JCP&L spokesperson, said.
Atlantic City Electric spokesperson Frank Tedesco said the utility is overseeing a $93 million infrastructure improvement project called Powering the Future for its more than half-million customers.
“We welcome continued engagement with stakeholders and regulators to advance New Jersey’s clean energy goals while ensuring fairness and value for customers,” Tedesco said.
