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Bill

A 255

Requires electric service providers to integrate energy storage systems into long-term planning process.

2026-2027 Regular Session Introduced by Paul Kanitra and 1 co-sponsor

New Jersey requires electric providers to plan and procure energy storage systems as part of grid planning to boost reliability, efficiency, and peak-demand reduction.

Introduced, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 255

Summary: New Jersey Bill A-255 (Session 222) — Energy Storage System Procurement Act

Purpose and intent

  • Establishes a framework for the integration of energy storage systems (ESS) into New Jersey’s electric grid planning.
  • Directs the Board of Public Utilities (BPU) to adopt rules and regulations enabling the procurement of ESS by electric service providers (which include basic generation service providers, electric power suppliers, and electric public utilities) as part of the electric distribution and transmission system planning process.
  • Aims to realize public benefits such as improved grid reliability, increased grid integration of energy, peak-demand reduction, and avoidance or deferral of other investments.

Key provisions and changes

Definitions (Section 3)

  • Clarifies terms:
    • "Electric service provider" = basic generation service provider, electric power supplier, or electric public utility.
    • “Energy storage system” = technology capable of retaining and delivering electrical energy (chemical, thermal, mechanical, etc.).
    • “Procure” = acquire by ownership or contractual right to use energy or capacity from an ESS.
    • “Grid” = electric distribution or transmission system.
  • Aligns terminology with existing New Jersey utility statutes (P.L.1999, c.23).

Rulemaking and procurement framework (Section 4)

  • The board (BPU) must, within 180 days after the completion of the report required by a prior statute (2018 law), adopt rules for ESS procurement as part of grid planning.
  • Rules must not disrupt any BPU-approved acquisitions or competitive processes that existed before the bill’s effective date.
  • BPU must strive to ensure ESS procurement yields systemic benefits, including:
    1. Greater energy integration into the public utility grid.
    2. Improved grid reliability.
    3. Reduced need for peaking generation during high demand.
    4. Avoidance, reduction, or deferral of utility investments.
  • Requirements for planning and evaluation (subsections c and d):
    • Establish a mechanism to include ESS benefits and costs in utility planning.
    • Require utilities to submit ESS data and analysis (to BPU or a BPU-approved third party), including potential interconnection points.
    • Ensure ESS connections do not compromise grid security, safety, or reliability.
    • Allow ownership of ESS by utilities or other parties.
    • Require acquisition plans detailing ESS integration and use, including modeling assumptions and procurement contracts.
    • Permit additional information as the BPU may request in grid planning docs.
    • Protect confidentiality of data shared with the BPU or approved third parties; potential ineligibility for future bids if data security violations occur.

Interim ESS filing (Section 5)

  • Permits an ESS application up to 15 MW capacity to be filed with the BPU before the final rules/regulations are adopted.

Pre-existing deployments (Section 6)

  • Preserves the validity of any cost-effective ESS deployments that existed before the bill’s effective date; the bill does not deter these.

Effective date

  • The act takes effect immediately upon enactment.

Who would be affected

  • Electric service providers in New Jersey (including basic generation service providers, electric power suppliers, and electric public utilities) would participate in ESS procurement as part of planning processes.
  • The BPU would regulate ESS procurement methodologies, data submission requirements, confidentiality rules, and interconnection considerations.
  • third-party entities approved by the BPU for data review and ESS procurement analyses may participate.

Procedural and timeline notes

  • If enacted, BPU must issue ESS procurement rules within 180 days after the completion of the related 2018 report.
  • An ESS project up to 15 MW can be filed with the BPU before final rules are adopted.
  • The act explicitly preserves existing ESS projects and processes that were approved prior to its effective date.

Potential impacts and considerations

  • Encourages integration of ESS into grid planning, potentially accelerating deployment of storage to improve reliability and efficiency.
  • Creates formal data-sharing and analysis requirements, with protections for customer data.
  • Establishes flexibility on ownership and procurement structures, accommodating various financing and ownership models.
  • Could influence utility planning economics by incorporating storage benefits and costs into planning models.

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

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