Bill Text: NJ A2779 | 2020-2021 | Regular Session | Introduced


Bill Title: Requires BPU to establish demand response programs for electric public utility customers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2020-02-13 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A2779 Detail]

Download: New_Jersey-2020-A2779-Introduced.html

I

ASSEMBLY, No. 2779

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 13, 2020

 


 

Sponsored by:

Assemblywoman  NANCY J. PINKIN

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Requires BPU to establish demand response programs for electric public utility customers.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning certain demand response programs and supplementing Title 48 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    As used in P.L.    , c.    (C.         ) (pending before the Legislature as this bill):

     "Board" and "electric public utility" shall have the same meaning as provided in section 3 of P.L.1999, c.23 (C.48:3-51).

     "Demand response program" shall mean a program offered by an electric public utility incentivizing customers to consume less electricity during certain times of the day.

     "Off-peak hours" and "peak hours" shall mean time intervals set by the board during which there is low or high demand for electricity. 

 

     2.    a.   The board shall establish a demand response program allowing:

     (1)   an electric public utility to reduce the amount of electricity delivered to a customer during peak hours without requiring the customer to take any action, as determined by the board;

     (2)   a customer of an electric public utility to reduce the customer's electricity consumption during peak hours, as determined by the board.

     (3)   an electric public utility to turn off or adjust a customer's air conditioning or electric heating system during peak hours, as determined by the board; and

     (4)   a customer of an electric public utility to opt in to higher electricity prices during peak hours and lower electricity prices during off-peak hours, as determined by the board.

     b.    An electric public utility shall provide its customers participating in one or more of the demand response programs established pursuant to subsection a. of this section a monthly rebate in an amount equal to 10 percent of the customer's monthly electric public utility bill.  An electric public utility shall not provide customers participating in two or more of the demand response programs established pursuant to subsection a. of this section a monthly rebate that is greater than 10 percent of the customer's monthly electric public utility bill.

     c.     A customer shall be responsible for the purchase and cost of installation of any device or technology required to be installed by the electric public utility at the customer's home or business for the customer to participate in one or more of the demand response programs established pursuant to subsection a. of this section.

     3.    All costs incurred by an electric public utility pursuant to   P.L.  , c.    (C.           ) (pending before the Legislature as this bill) shall be recoverable by the electric public utility in a base rate case proceeding.

 

     4.    The board shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), including, but not limited to, an application process for customers who wish to be included in one or more demand response programs, establishing the time intervals for peak and off-peak hours, and safeguards to ensure that customers are not placed at risk due to a lack of heat or air conditioning by allowing electric public utilities to adjust the electricity consumption of their customers. 

 

     5.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the Board of Public Utilities (board) to establish demand response programs to conserve electricity consumption by incentivizing customers to consume less electricity during certain times of day.

     Under the bill, the board is to establish demand response programs allowing: 1) an electric public utility (utility) to reduce the amount of electricity delivered to a customer during peak hours without requiring the customer to take any action; 2) a customer to reduce the customer's electricity consumption during peak hours; 3) a utility to turn off or adjust a customer's air conditioning or electric heating system during peak hours, as determined by the board; and 4) customers of a utility to opt in to higher electricity prices during peak hours and lower electricity prices during off-peak hours.

     A utility is to provide its customers participating in one or more of the demand response programs established under the bill a monthly rebate in an amount equal to 10 percent of the customer's monthly utility bill. A utility is not to provide customers participating in two or more of the demand response programs a monthly rebate that is greater than 10 percent of the customer's monthly utility bill.  A customer is to be responsible for the purchase and cost of installation of any device or technology required to be installed by the utility at the customer's home or business for the customer to participate in one or more of the demand response programs.

     All costs incurred by a utility are to be recoverable in a base rate case proceeding.  The board is to adopt rules and regulations necessary to effectuate the purposes of the bill, including, but not limited to, an application process for customers who wish to be included in one or more demand response programs, the establishment of time intervals for peak and off-peak hours, and safeguards to ensure that customers are not placed at risk to a lack of heat or air conditioning by allowing utilities to adjust the electricity consumption of customers.

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