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Bill

A 5585

Eliminates demand side management programs from cost recovery through societal benefits charge.

2024-2025 Regular Session Introduced by Dawn Fantasia and 1 co-sponsor

New Jersey bill removes demand-side management programs from societal benefits charge funding, potentially reducing utility-financed energy efficiency initiatives unless alternative funding emerges.

Introduced in the Assembly, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 5585

Legislative bill overview

Bill A 5585 removes demand side management (DSM) programs from being funded through the societal benefits charge (SBC) mechanism in New Jersey. The SBC is a surcharge on utility bills that currently finances various programs including energy efficiency, renewable energy, and low-income assistance. This bill would eliminate the cost recovery pathway for DSM programs specifically through this charge.

Why is this important

Demand side management programs help reduce electricity consumption through efficiency upgrades, smart grid technologies, and behavioral changes—lowering overall energy demand and costs. Removing their funding mechanism could reduce program availability unless alternative funding sources are established, potentially affecting energy efficiency investments and ratepayer savings. This directly impacts New Jersey's ability to meet state energy efficiency and climate goals.

Potential points of contention

  • Funding gap: Eliminating this cost recovery mechanism without specifying replacement funding could starve DSM programs or shift costs to other ratepayers through different mechanisms
  • Climate policy conflict: New Jersey has aggressive clean energy and emissions reduction targets that rely partly on demand-side efficiency; this could undermine those goals
  • Ratepayer impact: Changes to utility funding mechanisms affect all electricity consumers differently depending on consumption patterns and income levels

Compiled from official sources — confirm details with the bill’s official record.

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