Newsroom & Public Notices

PowerUp NJ Will Reward Customers for Opting-in Using Smart Devices

TRENTON, N.J. – November 12, 2026 – The New Jersey Board of Public Utilities (NJBPU) today took the first step toward creating PowerUp NJ, a new opt-in program that will drive energy affordability by paying residents and businesses to support the grid. Once launched, PowerUp NJ will turn customer-owned energy resources, such as smart thermostats, home batteries, EV chargers, and smart water heaters, into tools that reduce strain on the grid when demand peaks, offering financial incentives to participants and lowering costs for all customers. The action follows Gov. Mikie Sherrill’s Executive Orders No. 1 and 2, which declared an energy affordability emergency and directed the NJBPU to develop a virtual power plant program as part of the solution.

“New Jersey has always been on the cutting edge, and today we’re launching the process to build PowerUp NJ, a first-of-its-kind statewide virtual power plant program that will give ratepayers more control to drive down their own energy costs,” Governor Sherrill said. “Through this voluntary community energy program, residents and businesses can lend power from their homes – through smart devices, in-house batteries, solar panels, and other energy sources – to help support the grid when they are not using them, and we will pay you for that energy. That means more money in your pockets, less strain on the grid, and lower energy costs across our state. My Administration looks forward to working with the industry, utility companies, and public stakeholders as we build this innovative program.”

"Today’s Order marks the start of a transformation in how New Jersey’s grid operates, with customers and affordability at the center,” NJBPU President Ben Hertz-Shargel said. “PowerUp NJ turns the smart devices customers already own into powerful tools to reduce grid costs, drive down energy bills, and empower customers. We will develop this program carefully, learn from real-world results, and expand it over time, growing the earnings opportunities for residential and business customers."

 
PowerUp NJ will be the state’s virtual power plant program: a collection of customer-owned smart devices that briefly shift or trim electricity use when demand is highest. Most adjustments are designed to happen in the background, when customers are away or don’t need the extra energy, such as a battery discharging or an EV charger pausing until later in the evening. Others, like raising a thermostat a few degrees, may be noticeable, which is why participants can choose which devices and events to include. Participants who choose to enroll will be compensated for those adjustments, reducing their energy costs. All New Jerseyans will benefit as less traditional power generation and fewer grid investments are required to meet customer needs. Businesses can enroll as well and get paid to reduce energy use during peak times using any method they choose.

Board Staff’s preliminary analysis estimates that a three percent cut in peak demand could avoid roughly $60 million a year in system capacity costs, driving down energy bills for all ratepayers. Additionally, by reducing peak demand, PowerUp NJ can decrease reliance on fossil-fuel generation – especially dirty, expensive “peaker plants”– reducing greenhouse gas emissions and other air pollutants, of particular importance to overburdened communities located near conventional generating facilities.

Today’s Board Order requires Atlantic City Electric (ACE), Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G), and Rockland Electric (RECO) to implement interim versions of PowerUp NJ for their customers by October 1, 2027. These interim programs, which will build on technologies and demand response programs the utilities already operate, will run for two years. Their goals are to deliver measured and verified reductions in peak demand, thereby putting downward pressure on customer rates and improving reliability, and to gather real-world data to inform a long-term framework for PowerUp NJ.

For more information on PowerUp NJ, please visit https://cleanenergy.nj.gov/powerupnj.

About the New Jersey Board of Public Utilities (NJBPU)

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints and investigating utility accidents. To learn more, visit www.nj.gov/bpu.

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