A 796 — Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.**

A796P.L. 4R [Fourth Reprint] ASSEMBLY, No.

7962026, STATEc.032 OF(A796 NEW4R) JERSEY§1 222ndC.48:7-6.2 LEGISLATURE   PRE-FILEDP.L. FOR INTRODUCTION IN THE 2026 SESSION     Sponsored by:

Assemblyman2026, DAVIDCHAPTER BAILEY,32, JR.approved July 7, 2026 Assembly, No.

District796 3(Fourth (Cumberland,Reprint) Gloucester  and  Salem)An AssemblymanAct JOEconcerning DANIELSENthe Districtprovision 17of (Middlesexelectricity andto Somerset)1[data Assemblymancenters] CLINTON2[certain CALABRESEcommercial Districtcustomers1] 36certain (Bergendata centers2 and Passaic)supplementing Assemblywoman Title ELIANA48 PINTORof MARINthe DistrictRevised 29Statutes. (Essex and Hudson) Senator  JOHN J.

BURZICHELLI District 3 (Cumberland, Gloucester and Salem) Senator  JOHN F.

MCKEON District 27 (Essex and Passaic)   Co-Sponsored by:

Assemblywomen Donlon, Speight, Peterpaul, Assemblymen Venezia, Karabinchak, Assemblywoman Bagolie, Assemblyman Singh, Assemblywoman Reynolds-Jackson, Assemblyman Bhalla, Assemblywoman Brennan, Assemblymen Moen, Macurdy, Tully, Assemblywoman Swain, Senators Turner, Beach, Moriarty, Diegnan, Singleton, Mukherji, Cryan, Greenstein and McKnight         SYNOPSIS      Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.

  CURRENT VERSION OF TEXT      As amended by the Senate on June 18, 2026.

   An Act concerning the provision of electricity to 1[data centers] 2[certain commercial customers1] certain data centers2 and supplementing Title 48 of the Revised Statutes.

     b.    No later than 180 days after the effective date of this section, each electric public utility shall file an application with the Board of Public Utilities to establish a tariff for the provision of electricity to large load 1[data centers] 2[customers1] data centers2 .  The board may establish rates specific to large load 1[data centers] 2[customers1] data centers2 for use by an electric public utility in formulating the tariff.  The tariff shall be designed to:       (1) (1)   ensure that 1[non-data center ratepayers are protected from any increased costs that result from increased electricity demand caused by large load data centers;

and] other electric public utility customers do not subsidize large load 2[customers] data centers2 and all costs attributable to the electric public utility’s large load 2data center2 customers are assigned to the large load 2[customers] data centers,2 as determined by the board;1      (2) (2)   1contain protections necessary to ensure that other electric public utility customers are not placed at risk for paying stranded costs associated with the electric public utility serving the large load 2[customer] data center2 ;

     c.   c.     The board shall expeditiously review, pursuant to the provisions of section 7 of P.L.1999, c.23 (C.48:3-55) and the rules or regulations adopted pursuant thereto, each application submitted pursuant to this section, and shall approve the application if the board determines that it complies with the requirements of this section and all other applicable laws, rules, and regulations.

     e.   e.     All rates, terms, and conditions established by the board for large load 1[data centers] 2[customers1] data centers2 shall reasonably protect 1[ratepayers] other electric public utility customers1 against increased 1transmission and distribution1 costs resulting 1[from new transmission, distribution, capacity, or energy rates resulting]1 solely or primarily from serving large load 1[data center]1 2[customers] data centers2 .  In carrying out the provisions of this section, the board shall require each 1electric public1 utility to:  (1) ensure that any new large load 1[data]1 2[customer] data center2 provides adequate financial guarantees that they will 1[take] pay for1 at least 85 percent of service they request for a period of not less than 10 years from when service commences;

of this section, an electric public utility shall apply the tariff developed pursuant to this section, as approved by the board, to each large data center customer within the electric public utility’s service area 4[solely with respect to that customer’s new large data centers]4 . . The board shall have the authority to determine whether a customer qualifies as a large data center customer pursuant to this section.

The board shall have the authority to determine whether a customer qualifies as a large data center customer pursuant to this section.

                                            Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.