This bill establishes a surcharge for electric public utility services provided to large load data centers during peak demand periods. It mandates that electric public utilities file an updated tariff schedule with the New Jersey Board of Public Utilities (BPU) that includes this surcharge. The utilities are required to transfer all collected surcharge funds to the BPU, which will then deposit the money into a newly created Grid Modernization Fund. This fund is specifically designated for efforts to modernize New Jersey's electrical grid.

The bill defines a large load data center as a facility that primarily stores and processes digital data, houses various computer and network systems, and has a monthly demand of at least 50 megawatts. The BPU is tasked with administering the Grid Modernization Fund, which will receive not only the surcharge funds but also any appropriated legislative funds and returns on investments. The BPU will also be responsible for adopting necessary rules and regulations for the implementation of this act. The bill is set to take effect immediately upon passage.