S 731 New Jersey Senate · 2026-2027 Regular Session

Requires electric public utilities to develop and apply special rules for large load customers to protect non-large load customers from increased costs.*

S 731 requires New Jersey electric utilities to create special pricing plans for large data centers (defined as facilities with 100+ megawatts monthly demand) to protect regular electricity customers from cost increases. The bill mandates that these plans must prevent non-data center ratepayers from bearing costs from data centers' high energy use and incentivize data centers to improve energy efficiency, including using waste heat. Utilities must submit these plans to the Board of Public Utilities within 180 days, and the rules will take effect one year after the bill passes. Key requirements include data centers committing to 85% service levels for 10 years, proving project uniqueness, and providing financial guarantees to cover potential cost overruns if they reduce service.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2026 Last action Jun 30, 2026
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What changed between versions

Introduced Reprint · 6 edits
MODERATE
The bill was substantially broadened from targeting only data centers to covering any large commercial customer with a monthly demand exceeding 100 megawatts. The cost-protection mechanism was strengthened to require that all costs attributable to large load customers be assigned directly to them, and a new stranded-cost protection provision was added. These changes reflect the Senate Economic Growth Committee's effort to create a more general framework for managing the rate impact of very large commercial electricity loads.
Scope change
The bill's scope was significantly expanded from applying only to data centers (facilities whose primary purpose is digital data storage, management, and processing) to any commercial customer with centralized facilities exceeding 100 megawatts of monthly demand. This could include large manufacturing plants, data centers, or other high-demand commercial operations.
SCOPE

The bill's target was expanded from 'large load data centers' (facilities whose primary services are storage, management, and processing of digital data) to 'large load customers,' defined as any commercial customer for retail electric service that is a centralized facility or facilities with a monthly demand of more than 100 megawatts. This means the rules now apply to any large industrial or commercial consumer above the threshold, not just data centers.

REQUIREMENT

The cost-protection requirement was strengthened. The old language required that non-data-center ratepayers be 'protected from any increased costs.' The new language requires 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,' which is a more explicit and comprehensive cost-shifting mandate.

A new tariff design requirement was added: the tariff must 'contain protections necessary to ensure that other electric public utility customers are not placed at risk for paying stranded costs associated with the electric public utility serving the large load customer.' This addresses the risk that infrastructure built to serve a large load could become uneconomic if that customer leaves.

In the rate-protection provision (section e), the scope of protected costs was narrowed from 'new transmission, distribution, capacity, or energy rates' to just 'transmission and distribution costs.' This removes explicit reference to capacity and energy rate protections in that specific subsection.

The financial guarantee requirement was changed from ensuring customers will 'take at least 85 percent of service they request' to ensuring they will 'pay for at least 85 percent of service they request.' This shifts the obligation from a consumption-based standard to a payment-based standard.

TECHNICAL

The tariff application provision now explicitly requires that the tariff be applied 'as approved by the board,' adding a clearer approval step before utilities can implement the rates.

Floor votes

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Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
0
Amendments
2
Jun 18, 2026
Upper · Passed
Senate Amendment (Voice) (Ruiz)
upper
May 28, 2026
Upper · Passed
Senate Amendment (Voice) (Ruiz)
upper
Jan 13, 2026
Introduced
Introduced in the Senate, Referred to Senate Economic Growth Committee
upper
2 primary · 8 co-sponsors

Sponsors