Newsroom & Public Notices

New Rules Will Streamline Getting More Energy Resources on the Grid

TRENTON – At its May 21 Agenda Meeting, the New Jersey Board of Public Utilities (NJBPU) approved updates to grid modernization rules intended to reduce delays in the distribution grid interconnection process to speed up the timeline for projects to come online. The more streamlined process for distribution grid interconnection applications includes: more frequent updates to hosting capacity maps; a dispute resolution process; a pre-application and verification process to provide applicants with an early indication of project feasibility and costs; and a requirement for utilities to have a web portal for a more consistent interconnection application process regardless of service territory.

“The Board’s action marks another pivotal step toward modernizing the grid and making the interconnection process more efficient,” said NJBPU President Christine Guhl-Sadovy. "Increasing the number of distributed energy resources, including new solar projects, as quickly as possible is a key component of our comprehensive effort to drive down energy costs for ratepayers and we are delivering on that effort. Today's actions are years in the making and represent our commitment since Day 1 of this Administration to reduce utility costs and modernize our grid to meet the needs of all those who call New Jersey home."

The rule changes approved today will make it easier and enable more distributed energy resources (DER) to plug into New Jersey’s distribution grid. DERs—especially solar and storage—which are some of the cheapest and fastest resources to come online, reduce the peak energy forecasts for New Jersey. This in turn decreases the amount of capacity New Jersey needs to buy, which in turn puts downward pressure on capacity prices for all ratepayers, helping save money via avoided costs.

Steep increases in prices spurred by PJM’s capacity market are the main cause of the increased electricity costs New Jersey ratepayers will experience this summer. Deploying as many new generating resources like DERs as fast as possible is critical to helping both maintain reliability and mitigate rising electricity bills. Additionally, these updates help ensure optimal safety and reliability standards as broader grid modernization efforts to build a more flexible and responsive grid take place.

Proactively updating the state’s grid modernization rules has been a multi-year endeavor. The updated rules approved today reflect changes made following stakeholder feedback. In November 2022, the NJBPU accepted and released a report outlining short- and long-term recommendations to modernize the state’s electric grid and improve its interconnection rules. In 2023, the Board published a Straw Proposal with a request for comment and held multiple meetings with stakeholders. On April 17, 2024, the Board approved for publication in the New Jersey register proposed amendments and new rules at N.J.A.C. 14:8, which governs the interconnection of DERs to the electric grid. The rule proposal was published in the New Jersey Register on June 2, 2024. The Board received comments from the stakeholder community through August 2, 2024.