New Jersey Assembly Bill A3711

New Jersey 2022-2023 Regular Session

• Introduced: 5/2/22
• Refer: 5/2/22

Caption

Directs BPU to update interconnection standards for Class I renewable energy sources and develop fixed fee structure for interconnection costs.

Impact

A significant aspect of A3711 is the introduction of a fixed fee structure termed 'grid modernization fees' for developers of renewable energy projects. This fee will help offset various costs associated with interconnection, including administrative tasks, infrastructure upgrades, and other utility-related expenses. For residential net-metered projects smaller than or equal to 10 kilowatts, these fees are capped at $50 per kilowatt for the initial three years. Such measures aim to bring transparency and predictability to cost assessments for new renewable energy installations, aligning with New Jersey's clean energy goals as outlined in the Global Warming Response Act.

Summary

Assembly Bill A3711 aims to modernize New Jersey’s approach to renewable energy integration into the electric grid. Specifically, the bill directs the New Jersey Board of Public Utilities (BPU) to update the interconnection standards for Class I renewable energy sources which include solar, wind, and other sustainable energy forms. The initiative requires the BPU to establish safety and power quality standards, which must conform to model standards promoted by the Interstate Renewable Energy Council unless specific modifications are justified for New Jersey's context. This move is intended to streamline the process of connecting renewable energy projects to the grid.

Contention

The bill also allows electric utilities to recover costs exceeding the grid modernization fees from their customers, either through increased base rates or additional surcharges. This has raised concerns among consumer advocates who fear that such provisions might lead to higher costs for consumers, especially in areas where investment in renewable energy infrastructure is high. Moreover, while many stakeholders appreciate the push towards renewable energy, there are discussions around the long-term implications of cost recovery mechanisms for ratepayers and how these fees might impact the overall affordability of energy in New Jersey.