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New Jersey

Legislative activities

The New Jersey state legislature has passed legislation on net-metering in 1999, and amended the legislation to include interconnection standards in 2008. (S.B. 2936) It also established contractual methods for entering into solar easements in 1978 and established residential solar accessibility laws in 2007. As a continuation of solar laws, the New Jersey state legislature enacted solar and wind permitting standards in 2009 and 2010. (A.B. 2550, A.B. 3740) [2, 3, 4, 5, 6]


Regulatory activities

The State of New Jersey Board of Public Utilities first addressed distributed generation in 1988, later incorporating net metering in 1999. The Board began looking Time-of-Day pricing for both residential and business customers prior to 1999. [7]

As New Jersey is within the PJM footprint there is the opportunity for end-use customers to participate in demand response though curtailment service providers.

“The New Jersey Demand Response Working Group (DRWG) was formed in June 2007 per direction of the Board of Public Utilities—it was charged with developing a demand response procurement program that would enable the deployment of demand response. They recommended “a pilot program that would procure 300 MW of demand response and would leverage existing PJM programs for the sake of expediency and cost-effectiveness. While the pilot would use the PJM Capacity Market business rules, and utilize its soft ware infrastructure and personnel, the DRWG agreed that additional incentives—“premium payments”—should supplement existing PJM programs. The DRWG suggested that electric distribution companies (EDCs) should administer the premium payments. It also stated that the costs of the pilot program should be funded by the EDC’s “Retail Margin collections.” Furthermore, the DRWG informed the Board of Public Utilities that any demand response program should be offered statewide to all EDC distribution customers. Finally, the DRWG noted that in its second phase of operation it will focus on developing a competitive-procurement process for demand response.

In April 2008, Governor Corzine released the Draft New Jersey Energy Master Plan. The Draft Energy Master Plan is the state’s proposed “framework for a long-term energy strategy” through 2020. It identifies four challenges the state faces and finds that “by far, the most cost-effective way to preserve our reliability and reduce capacity costs is to reduce peak demand.” Furthermore, reducing peak demand is one of the plan’s five overarching goals.”” [1]

Distributed generation includes qualified cogeneration, small power production facilities, and net metering installations that is priced at the PJM Transaction Rate on an on-peak/off-peak basis, or the energy can be carried forward for billing purposes for up to 12 months.

Time-of-Day rates break the cost up for demand and electricity seasonally and into on-peak or off-peak pricing.


Utilities and Rate Schedules

Atlantic City Electric Company
- Atlantic City Electric Company Rates

First Energy Corp
- First Energy Corp Rates

Public Service Electric and Gas Company
- Public Service Electric and Gas Company Rates

Rockland Electric Company
- Rockland Electric Company Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx


State-Level Incentives

New Jersey has grants and loans for solar, wind, and water, and a grid-connected renewable program, solar sales tax exemption.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=NJ


Additional Resources

State Energy Office:
- State of New Jersey Board of Public Utilities Division of Energy

State Authority Dealing with Energy Regulation:
- State of New Jersey Board of Public Utilities
- Docket Search: http://www.bpu.state.nj.us/bpu/agenda/orders/

New Jersey Permanent Statutes

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=NJ


References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Database of State Incentives for Renewables & Efficiency, New Jersey Interconnection Standards, 01/08/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ11R&re=1&ee=1
[3] Database of State Incentives for Renewables & Efficiency, New Jersey – Net Metering, 02/02/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ03R&re=1&ee=1
[4] Database of State Incentives for Renewables & Efficiency, New Jersey Solar Easements, 12/14/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ01R&re=1&ee=1
[5] Database of State Incentives for Renewables & Efficiency, New Jersey Residential Solar Access Law, 10/26/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ15R&re=1&ee=1
[6] Database of State Incentives for Renewables & Efficiency, New Jersey Solar and Wind Permitting Laws, 03/11/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ17R&re=1&ee=1
[7] First Energy Corp, New Jersey Tariffs, 6/1/2010. URL: http://www.firstenergycorp.com/Residential_and_Business/Customer_Choice/Tariff_Information/New_Jersey_Tariffs.html