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Bill

S 2816

Requires electric public utilities to submit to BPU and implement electric infrastructure improvement plans.

2024-2025 Regular Session Introduced by John McKeon and 1 co-sponsor

Requires electric utilities to file and implement plans to reopen constrained distribution circuits, enabling more DER interconnections (solar/storage) with BPU review oversight.

Received in the Assembly, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · S 2816

Summary — S-2816 (Smith / McKeon)

Requires electric public utilities to submit to the Board of Public Utilities (BPU) and implement “electric infrastructure improvement plans” to reopen distribution circuits for additional distributed renewable resources.

Purpose / Intent

The bill directs the BPU to require each electric public utility to submit a plan to address distribution-circuit barriers that currently prevent or limit new distributed energy resource (DER) interconnections (e.g., circuits closed to any additional renewables or limited to ≤100 kW remaining capacity). The goal is to identify low‑cost, actionable infrastructure and inverter/controls measures to enable more DER additions.

Key provisions

  • Filing requirement (original text): each electric public utility must file an electric infrastructure improvement plan with the BPU no later than 90 days after the act’s effective date. (Floor amendments would extend filing to 120 days.)
  • Plan content (examples required in bill):
    • Measures to permit electricity flow from the distribution system to the transmission system through a substation.
    • Requirements that solar inverters and energy storage inverters include, activate, and utilize available inverter functions to inject and absorb reactive power (and for storage, real power as applicable).
    • (Original text) a requirement that PV systems include technology/services to respond to short‑term weather predictions to control power ramping; (floor amendments would remove this provision).
    • Any additional low‑cost, highly actionable solutions identified by the utility to reopen closed circuits.
  • BPU review and action:
    • Original text: BPU must review and approve or approve with modifications each plan within 120 days of the act’s effective date; committee amendment authorizes BPU to disapprove plans. (Floor amendments would change review timeline to 300 days.)
    • As a condition of approval, the BPU may require utilities to schedule work to be completed “at the earliest date possible.”
  • Reporting/performance (from floor amendments): utilities would be required to submit performance metrics and reports to the BPU showing whether implementation led to additional DER interconnection approvals.
  • Clarification (committee amendment): plans need not include improvements to the electric transmission system.

Who is affected

  • Electric public utilities in New Jersey — required to prepare and implement plans and report performance.
  • DER developers, solar/storage installers, and customers — could see increased ability to interconnect projects on previously constrained circuits.
  • BPU — receives, reviews, approves/modifies/disapproves plans and monitors outcomes.

Procedural / timeline notes

  • Introduced in Senate: 2024-02-22. Passed Senate 5/20/2024 (31–6). Received in Assembly and referred to Assembly Telecommunications & Utilities Committee (5/20/2024). As amended by the Senate (May 13, 2024). Companion Assembly bill: A-5302.
  • Effective date: the act takes effect immediately upon enactment (original text). Several amendment versions modify the filing and review deadlines (90 → 120 days filing; 120 → 300 days review) and add reporting requirements.

Practical implications

If enacted, utilities would be required to identify and implement technical and operational fixes (largely inverter settings, storage functions, substation flow capabilities, and other low‑cost measures) to relieve distribution constraints and enable additional distributed renewables — without explicitly prescribing funding or cost‑recovery mechanisms in the text provided.

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

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