Last week, N.J. Governor Mikie Sherrill signed three bills with the goal of lowering energy bills into law, including the Data Center Fair Share Act. The bills aim to slow rising electricity costs, increase oversight of utility spending, and require large data centers to help cover the cost of the grid capacity they use rather than passing it on to ratepayers through investments in locally sourced, community power.
Mary Rafferty, executive director of Common Charge, a national network of organizations advancing locally-sourced community power networks as a grid solution, released the following statement: “Creating pathways for data centers to invest in local power solutions is just common sense. Data centers are driving a lot of the new demand straining New Jersey’s grid, and the Data Center Fair Share Act puts real dollars into efficiency, smart thermostats, and battery storage in the homes, businesses, and communities nearby. That investment will help meet new demand, strengthen the local grid, and lower bills for everyone at the same time.
“Common Charge members have been making the case around the country that the batteries, thermostats, and rooftop solar already sitting on our local grids can meet a lot of this new demand. By skipping the need to build pricey new power plants and tying the cost to the companies creating it, these community power networks operate at a fraction of the price, lowering bills for everyone.
“Community power wins are stacking up around the country right now. Illinois signed the Clean and Reliable Grid Affordability Act in January, which requires utilities to launch programs paying households and businesses for their smart thermostats, solar panels, and batteries and took effect June 1. North Carolina’s microgrids kept the lights on during Hurricane Helene, and the state has put $5 million behind building more of them. New Jersey’s piece of that puzzle is the funding mechanism — making data centers, not ratepayers, cover the cost of the demand they’re creating.
“Every state watching its data center demand climb is facing this same choice. New Jersey chose to fund community power by holding data centers accountable, not by passing the cost to ratepayers. We expect more states to follow that lead.”
