This bill mandates that electric public utilities in New Jersey develop and submit a tariff to the Board of Public Utilities (BPU) specifically for large load data centers, defined as facilities with a maximum monthly demand of at least 100 megawatts. The tariff must be designed to protect non-data center customers from increased costs associated with the higher electricity demand from these data centers and to encourage energy efficiency practices, including the use of technologies that capture and utilize waste heat. The utilities are required to implement this tariff for each qualifying data center within their service area one year after the bill's enactment.

Additionally, the bill stipulates that all rates, terms, and conditions set by the BPU for these large load data centers must reasonably safeguard ratepayers from cost increases due to new transmission, distribution, capacity, or energy rates that arise primarily from serving these customers. To ensure this protection, the BPU can impose requirements on utilities, such as requiring large load data centers to provide financial guarantees for a minimum service commitment of 85% over ten years and to demonstrate the uniqueness of their projects. The BPU also has the authority to relax these requirements if a data center can provide sufficient operational flexibility or additional energy sources to mitigate potential rate impacts.