New Jersey Senate Bill S3464

New Jersey 2024-2025 Regular Session

• Introduced: 6/20/24
• Refer: 6/20/24

Caption

Requires electric public utilities to upgrade certain portions of electric transmission and distribution system with advanced conductors.

Impact

If enacted, S3464 would significantly impact state laws governing electric utilities. It establishes a framework whereby utilities can request to include the costs for these advanced reconductoring projects in their rate base, allowing them to recoup expenses from ratepayers. The Board of Public Utilities (BPU) is empowered to define reasonable costs associated with these projects, which may encompass considerations beyond simple cost, such as environmental benefits and reductions in electrical losses. This has the potential to foster an environment that encourages investment in modern infrastructure.

Summary

Senate Bill 3464 (S3464) aims to modernize New Jersey's electric transmission and distribution system by requiring electric public utilities to upgrade certain portions of their infrastructure with advanced conductors. These advanced conductors are designed to reduce electrical resistance by at least 10% compared to existing products, enhancing the overall efficiency of the power grid. The bill mandates that each utility conduct a thorough assessment within one year of the bill's effective date to identify the most suitable locations for these upgrades.

Contention

The introduction of S3464 may stir debate among stakeholders in the energy sector. Supporters are likely to argue that the upgrades not only enhance grid reliability but also support New Jersey's goals of reducing carbon emissions and promoting renewable energy usage. However, concerns may arise regarding the financial burden it places on utilities and consequently on consumers. The balance between modernization efforts and the economic implications for ratepayers will be a central point of contention as the bill moves through the legislative process.