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Bill

Bill

S 389

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

2024-2025 Regular Session Introduced by Joe Pennacchio

Bill eliminates demand side management programs from New Jersey's societal benefits charge cost recovery, potentially reducing energy efficiency funding and increasing grid demand pressures.

Introduced in the Senate, Referred to Senate Environment and Energy Committee
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Bill Summary · S 389

Legislative bill overview

S 389 removes demand side management (DSM) programs from the list of initiatives that can recover costs through New Jersey's societal benefits charge—a surcharge on electricity bills that funds various public benefit programs. This would eliminate a funding mechanism for programs that incentivize consumers to reduce energy consumption during peak demand periods.

Why is this important

DSM programs help reduce strain on the electrical grid during peak hours, potentially lowering overall energy costs and infrastructure investments. Eliminating this funding stream could defund energy efficiency initiatives, shift costs to other ratepayers, or reduce incentives for residential and commercial energy conservation efforts across the state.

Potential points of contention

  • Ratepayer impact: Removing DSM from the societal benefits charge could increase costs for other programs funded through that mechanism, or reduce program funding overall, affecting low-income households that benefit from efficiency assistance
  • Energy grid reliability: DSM programs help manage peak demand; eliminating funding could increase grid stress and the need for additional generation capacity and infrastructure spending
  • Climate and efficiency goals: New Jersey has commitments to emissions reductions and energy efficiency targets; defunding DSM programs may conflict with these stated policy objectives

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

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