Jul 03, 2026 | Posted by Abdul-Rahman Oladimeji
New Jersey lawmakers have passed a bill directing the state’s Board of Public Utilities to create a dedicated tariff for data centers with capacities of 50MW or more, aimed at protecting other ratepayers from rising costs linked to new developments. The legislation, S731, replaces an earlier version introduced in 2024 that was pocket-vetoed by former governor Phil Murphy. The revised bill now awaits final approval from Governor Mikie Sherrill, with supporters expressing confidence it will be signed into law.
The revised bill expands coverage to both new and existing facilities, lowers the threshold to 50MW, and aggregates related sites under common ownership. It also introduces stricter requirements, including long-term financial commitments, demand response participation, and prioritizing grid access for projects with clean energy or storage. Large data centers would be curtailed before residential users during grid emergencies.
Oregon regulators recently approved a new rate class for data centers and other large electricity users, which is now in effect. In Oklahoma, Governor Kevin Stitt signed legislation aimed at shielding ratepayers from infrastructure and utility costs linked to data centers. Florida has enacted a similar law, preventing utilities from passing such costs on to residential and small-business customers and requiring large users to cover their full cost of service. Comparable measures have also been introduced or passed in states including Ohio, North Carolina, and Virginia.
