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Bill

S 657

Requires electric public utilities to develop and implement grid modernization plans; appropriates $300 million.

2026-2027 Regular Session Introduced by Linda Greenstein and 3 co-sponsors

NJ utilities must submit Grid Modernization Plans to improve reliability and resilience, with a $300M grants fund to offset ratepayer increases.

Introduced in the Senate, Referred to Senate Environment and Energy Committee
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Bill Summary · S 657

Overview

S 657 (New Jersey, Session 222) would require every electric public utility in the state to develop and implement a Grid Modernization Plan for its distribution system. The bill also creates a grant program funded with $300 million to offset rate increases that result from plan implementation and expands the allowable uses of certain public utility funds to support ratepayer relief.

Main purpose and intent

  • Modernize the electric distribution system through utility-specific Grid Modernization Plans.
  • Identify cost-effective, beneficial projects to improve reliability, resilience, and alignment with state energy, climate, and infrastructure goals.
  • Provide financial relief to ratepayers for potential cost increases associated with plan implementation.

Key provisions and changes

  • Definitions (new section): Establishes terms for Board of Public Utilities (BPU), distributed energy resources, and Grid Modernization Plan.
  • Plan requirement and content (Section 2):
    • Each electric public utility must prepare and submit a Grid Modernization Plan to the BPU within one year of the act’s effective date.
    • Plans may include: energy storage integration, increased interconnection capacity for distributed energy resources, alignment with greenhouse gas goals, outage risk reduction (including storms/adverse weather), resilience to climate hazards, and general improvements to uninterrupted service.
    • Plans must include cost estimates and implementation timelines.
    • The BPU has 240 days to approve, conditionally approve, or disapprove each plan; lack of written notice results in deemed approval.
  • Implementation timeline (Section 3):
    • Once approved, utilities must begin implementing within 90 days (or another timeframe set by the board) and complete according to the plan’s timeline.
    • If unable to fully implement, utilities must notify the board.
    • Cost recovery for plan implementation is allowed, subject to board review.
  • Grant program and ratepayer relief (Section 4):
    • The BPU must establish a Grid Modernization Ratepayer Relief Grant program to offset rate increases from plan implementation.
    • A special, nonlapsing Grid Modernization Ratepayer Relief Fund is created to receive appropriations and other eligible funds (including societal benefits charge, regional greenhouse gas initiative funds, and related investment returns).
    • Priority criteria for grants favor projects leveraging federal funding (e.g., Infrastructure Investment and Jobs Act, Inflation Reduction Act) and those that advance grid modernization.
  • Fund administration and oversight (Sections 5-6):
    • Amends existing societal benefits charge provisions and related funds to accommodate ratepayer relief grants and grid modernization funding.
    • Establishes a framework for fund management, including administration allocations, and independent audit/fiscal oversight by the State Comptroller.
  • Appropriation (Section 7):
    • $300 million General Fund appropriation to the Grid Modernization Ratepayer Relief Fund to support the grant program.
  • Effective date (Section 8):
    • The act takes effect immediately.

Who would be affected

  • Electric public utilities operating in New Jersey: required to develop and implement Grid Modernization Plans.
  • BPU: responsible for approving plans, administering the grant program, and overseeing cost recovery.
  • Ratepayers: potential rate relief through grants offsetting increases tied to plan implementation.
  • State agencies (e.g., Department of Environmental Protection, NJ Economic Development Authority) involved in program coordination and funding allocations.

Procedural and timeline aspects

  • Plans due within one year of enactment.
  • BPU review window: up to 240 days per plan; deemed approval if no written action.
  • Implementation to start within 90 days of plan approval; full implementation as scheduled in the plan.
  • Annual funding and administrative rules for the ratepayer relief fund, including audit and oversight mechanisms.

Potential impact

  • Accelerates grid modernization with a focus on reliability, resilience, and clean energy integration.
  • Creates a dedicated funding stream to mitigate ratepayer impacts during modernization.
  • Encourages leveraging federal funds to maximize program benefits.

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

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