S3192 —

S3192 SEG1R Statement[First 1/14/21Reprint] SENATE ECONOMIC GROWTH COMMITTEE   STATEMENT TO   SENATE, No.

 3192 withSTATE committeeOF amendmentsNEW JERSEY 219th LEGISLATURE   STATEINTRODUCED OFNOVEMBER NEW16, JERSEY2020   DATED:  Sponsored by:

 JANUARYSenator  14,TROY 2021SINGLETON District 7 (Burlington)          The  Senate  EconomicSYNOPSIS Growth     CommitteeRequires reportselectric favorablypublic utility to install and withoperate committeesmart amendmentsmeter Senateinfrastructure Billand No.technology at certain customers’ premises;

3192.provides employment protections for certain electric public utility employees.

       AsCURRENT amendedVERSION andOF reported,TEXT this     billAs requiresreported anby electricthe publicSenate utilityEconomic (utility)Growth toCommittee fileon aJanuary proposed14, or,2021, as applicable, an updated plan with theamendments. Board of Public Utilities (BPU) for the procurement and installation of “smart meter infrastructure” and “smart meter technology,” as defined in the bill, at customer premises.  The BPU is to approve or modify the smart meter plan within 180 days of plan submittal.  The plan is to describe the smart meter infrastructure and smart meter technology the utility proposes to furnish, and the requirement that the utility furnish the smart meter infrastructure and smart meter technology either:

1)   uponAn aAct requestconcerning fromcertain aelectric customerpublic thatutility agreesmeter toinfrastructure payand thetechnology costand ofemployment theprotections smart meter infrastructure and technologysupplementing atTitle the48 time of the request;Revised Statutes.

or  2)     inBe newIt buildingEnacted construction. by The bill requires that the smartSenate meter plan include a provision requiring a utility to make available, with customer consent, direct smart meter access and electronicGeneral accessAssembly toof customerthe smartState meter data to third parties, including electric power suppliers and providers of anNew electricJersey: related service.

       The     bill1.    requiresAs aused utilityin toP.L.    file, onec.    or(C.        more) proposed(pending time-of-usebefore electric rates and real-time price plans for customers provided with smart meter infrastructure and smart meter technology after the implementationLegislature of a smart meter plan as athis componentbill): of the utility’s next rate base proceeding.  The BPU is to approve or modify the time-of-use rates and real-time price plan within 180 days of plan submittal.  A utility is required to offer time-of-use rates and real-time price plans to all customers that have been provided with smart meter infrastructure and smart meter technology and each residential or commercial customer may elect to participate in such a price plan.

          The“Board” billmeans allows a utility to recover reasonable and prudent costs of providing smart meter infrastructure and smart meter technology under a proposed smart meter plan approved by the BPU. Board Eligible cost recovery is to include annual depreciation and capital costs over the life of thePublic smartUtilities meteror infrastructure and smart meter technology, in accordance with a depreciation schedule not to exceed 25 years, and the cost of any electricsuccessor distributionagency. system upgrades that the utility may require to enable the use of smart meters and smart meter technology which are incurred, less operating and capital cost savings realized by the utility from the installation and use of smart meter infrastructure and smart meter technology.  The bill prohibits a utility from recovering lost or decreased revenues from customers due to reduced electricity usage or shifting electricity demand, but a utility may recover costs through a petition or, as applicable, an updated petition filed and approved by the board.

          The“Customer” billmeans requiresany aperson utilitythat tois offeran anyend employeeuser whoseand positionis hasconnected been eliminated due to theany utility’spart installation and operation of smartthe metertransmission infrastructure and smartdistribution metersystem technologywithin aan one-timeelectric rightpublic ofutility's firstservice refusalterritory forwithin anythis availableState. position with the utility for which the employee may qualify.

          The“Electric committeepower amendedsupplier” theshall billhave to change timelines for plan submissions to the board,same requiremeaning plansas toprovided includein independentsection analyses3 estimatingof theP.L.1999, cost,c.23 increase(C.48:3-51). the depreciation schedule timeframe for cost recovery, and to change the manner through which a utility may recover costs.

     “Electric public utility” or “utility” means a public utility, as that term is defined in R.S.48:2-13, that provides electric distribution service to customers in this State.

     “Electric related service” shall have the same meaning as provided in section 3 of P.L.1999, c.23 (C.48:3-51).

     “Smart meter” means an electric metering device that employs smart meter technology to measure and record electricity usage data to both an electric public utility and a customer for billing and other purposes.  “Smart meter” shall include a basic hourly interval meter, a meter with one-way communication, and a real-time meter with built-in two-way communication capable of recording and transmitting instantaneous electric usage data.

     “Smart meter infrastructure” means a system consisting of the following components including, but not limited to:

     a.     a smart meter at the customer’s premises;

     b.    a communications network between the smart meter and the electric public utility and electric power supplier serving the customer;

and      c.     a smart meter data management application at the premises of the electric public utility and electric power supplier.

     “Smart meter technology” means technology, including metering technology and network communications technology capable of bidirectional communication between a customer and an electric public utility and electric power supplier serving the customer, that records electricity usage on at least an hourly basis, including related electric distribution system upgrades to enable the technology.

 “Smart meter technology” shall include technology that provides utility customers with direct access to, and use of, electricity price and consumption information.  “Smart meter technology” shall also include technology that:

     a.     directly provides utility customers with information on their hourly electricity usage;

     b.    enables time-of-use electric rates and real-time price plans;

     c.     effectively supports the automatic control of the customer’s electricity consumption by one or more of the following, as selected by the customer:

     (1)   the customer;

     (2) the customer’s utility;

or      (3)   a third party engaged by the customer or the customer’s utility.

       2.    a.

 1[Within 90 days after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), an] An1 electric public utility shall 1[submit to] file with1 the Board of Public Utilities, in a form and manner determined by the board, a proposed plan 1or, as applicable, an updated plan as ordered by the board,1 for the procurement and installation of smart meter infrastructure and smart meter technology.

 1A utility shall include in its filing with the board an independent analysis that estimates the costs and benefits of the procurement and installation of smart meter infrastructure and smart meter technology.1  The board shall approve or modify a proposed smart meter plan within 180 days of plan submittal.  A proposed smart meter plan shall describe the smart meter infrastructure and smart meter technology the utility intends to furnish and shall require the utility to furnish smart meter infrastructure and smart meter technology, as follows:

     (1)   upon a request from a customer that agrees to pay the cost of the smart meter infrastructure and smart meter technology at the time of the request;

or      (2)   in new building construction.

     b.    A plan filed with the board, pursuant to subsection a.

of this section, shall include a provision that an electric public utility shall make available, with customer consent, direct smart meter access and electronic access to customer smart meter data to third parties, including electric power suppliers and providers of an electric-related service.

       3.    1[Within 24 months after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), an] After the implementation of its smart meter plan, an1 electric public utility shall submit to the board 1, as a component of the utility’s next rate base proceeding filed under R.S.48:2-21 or R.S.48:2-21.1,1 one or more proposed time-of-use electric rates and real-time price plans for customers provided with smart meter infrastructure and smart meter technology.  The board shall approve or modify the time-of-use rates and real-time price plan within 180 days of plan submittal.  A utility shall offer the time-of-use rates and real-time price plan to all customers that have been provided with smart meter infrastructure and smart meter technology pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  A residential or commercial customer may elect to participate in a time-of-use rates or real-time price plan.

       4.    a.

An electric public utility may recover reasonable and prudent costs of providing smart meter infrastructure and smart meter technology, pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill), under a 1proposed smart meter1 plan approved by the board.  Eligible cost recovery shall include annual depreciation and capital costs over the life of the smart meter infrastructure and smart meter technology, in accordance with a depreciation schedule not to exceed 1[15] 251 years, and the cost of any electric distribution system upgrades that the utility may require to enable the use of smart meter infrastructure and smart meter technology that are incurred after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), less operating and capital cost savings realized by the utility from the installation and use of smart meter infrastructure and smart meter technology.

     b.    An electric public utility may recover smart meter infrastructure and smart meter technology costs 1[as follows:

     (1)   through base rates, including a deferral for future base rate recovery of current basis with a carrying charge as determined by the board;

or      (2)   on a full and current basis through a reconcilable automatic adjustment clause as determined by the board] through a petition or, as appropriate, an updated petition, filed with and approved by the board, under any applicable rules and regulations promulgated by the board1.

     c.     In no event shall lost or decreased revenues by an electric public utility, due to reduced electricity consumption or shifting electricity demand, be considered any of the following: