A 4801 — Establishes certain protections against demand by large-load addition customers in State.

A4801 1R [First Reprint] ASSEMBLY, No.

DEANGELO District 14 (Mercer and Middlesex)    Co-Sponsored  by:   SYNOPSIS      Establishes certain protections against demand by large-load addition customers in State.

Assemblymen Kearney, Bhalla, Assemblywoman Swain and Assemblyman Tully   CURRENT  VERSION  OF  TEXTSYNOPSIS      AsEstablishes introduced.certain protections against demand by large-load addition customers in State.

  CURRENT VERSION OF TEXT      As reported by the Assembly Telecommunications and Utilities Committee on June 4, 2026, with amendments.

            1.   1.   As used in P.L.    , c.    (C.        ) (pending before the Legislature as this bill):            “Board” means the New Jersey Board of Public Utilities or a successor agency.

          “Electric public utility” means the same as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

          “Large-load addition customer” means 1an1 individual additions1[additions] addition1 of load at or above 50 MW at1[at a single point of interconnection.interconnection] or an alternative MW threshold set by the board pursuant to section 5 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill)1.

          “Load-serving entity” means an entity, or the duly-designated agent of the entity, including a load aggregator or power marketer, that serves end-users within the State and is authorized to sell electric energy to end-users located within the State.State.  1“Load-serving entity” includes a large-load addition customer serving as the large-load addition customer’s own load-serving entity.1       “PJM Interconnection, L.L.C.” or “PJM” means the same as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

          “PJM“Reliability Interconnection,1[backstop]1 L.L.C.”procurement” ormeans “PJM”a meansPJM-approved themechanism sameto asprocure thatlong-term term1[contracts] iscommitments1 definedfrom innew sectioncapacity 3resources, ofhowever P.L.1999,constituted, c.231that (C.48:3-51).are1 deemed necessary to ensure electric system reliability 1[during periods when market-based outcomes are insufficient to meet forecasted needs]1.

      “Reliability      backstop2.   procurement”When meansissued a PJM-approvedcurtailment mechanismobligation or directive from PJM due to procurea long-termload-serving contractsentity’s from1or newan capacityelectric resources,public howeverutility’s1 constituted,provision deemedof necessaryservice to ensurea large-load addition customer, the load-serving entity 1or electric systempublic reliabilityutility1 duringshall periodsimpose whenPJM’s market-basedcurtailment outcomesobligation areor insufficientdirective solely on the load-serving entity’s 1or electric public utility’s1 large-load addition customers 1, as appropriate1.  However, nothing in this section shall be construed to meetprevent forecasteda needs.load-serving entity 1or an electric public utility1 from taking necessary action to maintain system reliability and adopting voluntary load curtailment programs.

            2.   3.   WhenAny issuedfinancial aor curtailmentother obligation orassociated directivewith from1[the] PJMa1 duereliability to1[backstop]1 aprocurement, load-servingor entity’sother provisioncomparable assignment of servicelong-term tocapacity aobligations, large-loadthat additionis customer,assigned theto a load-serving entity shall1or imposean PJM’selectric curtailmentpublic obligationutility1 orshall directivebe solelypassed onthrough the1or load-servingallocated1 entity’sto large-load addition customers. customers However,under nothingsubstantially-similar interms thisas sectionPJM shallassigns bethe construedfinancial toor preventother aobligations load-serving entity from taking necessary action to maintainthe systemload-serving reliabilityentity and1or adoptingelectric voluntarypublic loadutility1. curtailment programs.

            3.   4.   AnyIn financialorder orto otherreceive obligationelectric associatedpublic withutility service from an electric public utility in the reliabilityState, backstopa procurement,large-load oraddition othercustomer comparableshall:  assignmentprovide ofappropriate long-termfinancial capacitysecurity obligations,1,1 thatin isa assignedmanner approved by the board, to a1[either]1 load-servingthe load serving entity shall1[or] be, PJM,1 the electric public utility, 1or other entity,1 as appropriate, to ensure that costs associated with 1a1 reliability 1[backstop]1 procurement are not passed through to other New Jersey customers, 1even1 if the large-load addition customerscustomer’s underdemand substantially-similaron termsthe aselectrical PJMgrid assigns1[necessitates thereliability financialbackstop orprocurement otherthrough obligationsPJM] todoes not fully materialize over the load-servingterm entity.of the reliability procurement commitment1 ;

       4.    In order to receive electric public utility service from an electric public utility in the State, a large-load addition customer shall:  provide appropriate financial security in a manner approved by the board, to either the load serving entity or the electric public utility, as appropriate, to ensure that costs associated with reliability backstop procurement are not passed through to other New Jersey customers, if the large-load addition customer’s demand on the electrical grid necessitates reliability backstop procurement through PJM;

       5.    The board shall, in accordance with the "Administrative“Administrative Procedure Act,"Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the provisions of 1[this act] P.L.    , c.    (C.        ) (pending before the Legislature as this act,bill)1, including 1rules and regulations determining an alternative MW threshold for large-load addition customers and1 the form of the appropriate financial security pursuant to section 4 of P.L.    , c.     (C.        )c.    (C.        ) (pending before the Legislature as this bill).

    STATEMENT        This bill prohibits certain costs and obligations related to the large load addition customers from being passed to non-large load addition customers.

     The regional grid operator for the State, PJM Interconnection, L.L.C.

or PJM, has been developing options for new load customers whose electricity demand can be curtailed in times of system need.  Further, PJM has engaged stakeholders in a proposal for creating a reliability backstop procurement auction that is to procure long-term energy contracts from new capacity resources.

     Under the bill, when issued a curtailment obligation or directive from PJM due to a load-serving entity’s provision of service to a large-load addition customer, the load-serving entity is required to impose PJM’s curtailment obligation or directive solely on the load-serving entity’s large-load addition customers.  However, the bill does not prevent a load-serving entity from taking necessary action to maintain system reliability and adopting voluntary load curtailment programs.

     Additionally, the bill requires any financial or other obligation associated with reliability backstop procurement, or other comparable assignment of long-term capacity obligations, that is assigned to a load-serving entity to be passed through to large-load addition customers under substantially-similar terms as PJM assigns the financial or other obligations to the load-serving entity.

     Finally, under the bill, in order to receive electric public utility service in the State, a large-load addition customer is required to:  (1) provide appropriate financial security to either the load serving entity or the electric public utility, as appropriate, to ensure that costs associated with reliability backstop procurement are not passed through to other New Jersey customers, if the large-load addition customer’s demand on the electrical grid necessitates reliability backstop procurement through PJM;

and (2) submit detailed information to PJM as outlined in the bill.