This bill mandates the Board of Public Utilities (BPU) to conduct a study on the impact of electricity usage by data centers on electricity rates in New Jersey. The study must be completed within one year of the bill's enactment and will focus on several key areas, including whether current cost allocations unfairly burden non-data center customers, the potential for unreasonable rate increases due to infrastructure needs for data centers, and projections of how data center demand will affect residential electricity rates over the next 20 years. Additionally, the BPU is tasked with evaluating policy alternatives, such as implementing a special tariff for data centers, to mitigate any adverse effects on ratepayers.

The BPU is required to submit a report detailing its findings and recommendations to the Governor and the Legislature within 15 months of the bill's effective date. The act will take effect immediately and will expire 30 days after the submission of this report. This legislative initiative aims to ensure that the growth of data centers does not lead to disproportionate costs for residential electricity consumers.