This bill establishes a natural gas power plant procurement program under the Board of Public Utilities (BPU) in New Jersey, aimed at incentivizing the development of new natural gas power plants that generate at least 1,100 megawatts of electric power. It defines key terms such as "allowable cost increase," "qualified project," and "natural gas energy certificate" (NGEC), and outlines the process for entities to express interest in constructing these plants. The BPU will evaluate these expressions of interest and grant provisional qualification status to projects that meet specific criteria related to energy reliability, resilience, and cost-effectiveness for ratepayers. The bill also details the negotiation process for funding and pricing structures, including provisions for sharing allowable cost increases and returning revenues to New Jersey ratepayers.

To support the financial aspects of these projects, the bill introduces a non-bypassable charge known as the natural gas development charge (NGDC), which will be imposed on all electric utility customers. The funds collected through the NGDC will be deposited into the newly established Natural Gas Power Plant Development Fund, designated to cover a portion of the construction costs and any allowable cost increases for qualified projects. Additionally, the bill mandates the establishment of a natural gas energy certificate program within 18 months of designating any qualified project, requiring electric power suppliers to source a certain percentage of their energy from these projects. Overall, the legislation aims to enhance New Jersey's energy infrastructure while ensuring that costs remain reasonable for consumers.

Statutes affected:
Introduced: 48:3-60