A 796 New Jersey General Assembly · 2026-2027 Regular Session

Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.**

New Jersey's A796 requires electric utilities to create special rate structures for large data centers (defined as facilities with at least 100 megawatts of monthly demand) to prevent these centers from raising costs for regular residential and business customers. Utilities must file these rate plans with the Board of Public Utilities within 180 days, ensuring non-data-center customers are protected from cost increases caused by data centers' high energy use while also encouraging energy efficiency through incentives like heat-capture technology. The Board of Public Utilities will review and approve these plans, and utilities must apply them to qualifying data centers one year after the law takes effect. The bill also mandates financial safeguards, such as requiring new data centers to commit to using at least 85% of their requested service for 10 years, to further shield ratepayers from unexpected cost spikes.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
General Assembly Passage
Jun 2026
Senate Passage
Jun 2026
Signed into Law
Jul 2026
Introduced Jan 13, 2026 Signed Jul 7, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Reprint · 6 edits
MODERATE
The bill was significantly broadened from targeting only 'large load data centers' to covering all 'large load customers,' defined as any commercial retail electric customer with monthly demand exceeding 100 megawatts. This removes the data-center-specific requirements (digital data processing, server housing, etc.) and could encompass industrial facilities, manufacturing plants, or other high-demand commercial operations. The cost-allocation language was also strengthened to explicitly require that all costs attributable to large load customers be assigned to those customers rather than spread across ratepayers.
Scope change
The bill's scope expanded substantially from covering only data centers (facilities primarily engaged in digital data processing) to covering any commercial retail electric customer with monthly demand exceeding 100 megawatts, potentially including industrial and manufacturing facilities.
SCOPE

The bill's target population was broadened from 'large load data centers' (facilities whose primary service is digital data processing) to 'large load customers' (any commercial retail electric customer with monthly demand over 100 megawatts). This could include industrial, manufacturing, or other high-demand commercial facilities beyond data centers.

The cost-protection provision in section e was narrowed from protecting against 'new transmission, distribution, capacity, or energy rates' to only 'increased transmission and distribution costs,' removing explicit reference to capacity and energy rate increases.

DEFINITION

The definition of the covered entity was rewritten. The old definition required a facility to be primarily engaged in digital data storage/processing with specific infrastructure (servers, network equipment, etc.) and have at least 100 MW demand. The new definition simply requires a commercial retail electric customer that is a centralized facility or facilities with monthly demand of more than 100 MW.

REQUIREMENT

The tariff design requirement was strengthened: instead of merely 'protecting' non-data-center ratepayers from increased costs, the board must now ensure that 'all costs attributable to the electric public utility's large load customers are assigned to the large load customers as determined by the board.'

A new tariff design requirement was added: the tariff must contain protections to ensure other customers are not placed at risk for paying stranded costs associated with the utility serving the large load customer.

The financial guarantee requirement was changed from ensuring customers will 'take at least 85 percent of service they request' to 'pay for at least 85 percent of service they request,' shifting the obligation from consumption to payment.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
13
Key actions
5
Committee
1
Amendments
2
Jun 30, 2026
Lower · Passed
Passed Assembly (Passed Both Houses) (59-18-0)
lower
Jun 30, 2026
Upper · Passed
Passed by the Senate (27-11)
upper
Jun 18, 2026
Upper · Passed
Senate Amendment (Voice) (Ruiz)
upper
May 28, 2026
Upper · Passed
Senate Amendment (Voice) (Ruiz)
upper
Mar 23, 2026
Lower · Passed
Passed by the Assembly (55-18-0)
lower
Mar 19, 2026
Committee
Recommitted to Assembly Appropriations Committee
lower
Jan 13, 2026
Introduced
Introduced, Referred to Assembly Telecommunications and Utilities Committee
lower
5 primary · 18 co-sponsors

Sponsors