"Powering Up New Jersey Act"; establishes requirements for certain public utility infrastructure investments.*

The bill now applies to all public utilities (electric, gas, and water) rather than only electric public utilities. The title was changed from a Grid Modernization Plan requirement to the 'Powering Up New Jersey Act' establishing infrastructure investment requirements.

The original bill required utilities to implement approved plans within 90 days and provided full cost recovery for plan implementation. The new version replaces this with a structured IIP framework where only expenditures above baseline levels receive accelerated recovery, subject to prudence review in the next base rate case.

The entire ratepayer relief grant program and the Grid Modernization Ratepayer Relief Fund (original section 4) were removed, along with amendments to the societal benefits charge (original section 5) and RGGI fund allocation (original section 6).

New sections 3-10 establish an Infrastructure Investment Program (IIP) framework allowing public utilities to obtain accelerated cost recovery for qualifying projects. Only expenditures above board-established annual baseline spending levels are eligible for accelerated recovery. The separate rate clause cannot exceed 5% of delivery rates. An earnings test applies, and if return on equity exceeds the allowed level by 50 basis points or more, accelerated recovery is suspended.

New section 2 requires electric public utilities to conduct advanced planning for hosting capacity and load capacity, upgrade systems to meet air quality and decarbonization standards, file detailed mapping of hosting/load capacity within 240 days of companion bill enactment, establish target energization and interconnection time periods, automate level 1 interconnection processing, offer optional flexible interconnection tariffs, use distributed energy resources to avoid traditional upgrades, and design commercial/industrial rates for high-voltage EV charging.

Projects eligible for the IIP must relate to safety, reliability, or resiliency, be non-revenue producing (unless required by section 2), be specifically identified in the utility's petition, and be approved by the board. Eligible project types include gas main replacements, electric distribution automation, break-predictive water sensors, poles/wires/substations, and other board-approved projects.

The board may establish performance incentives or penalties and require remedial actions. Utilities must file annual energization and interconnection reports with the board, publish hosting capacity data quarterly on their websites, and file semi-annual status reports after IIP approval. An independent monitor may be required at the utility's expense.

IIPs may extend for five years or less. Utilities must file their next base rate case no later than five years after IIP start date (board may require shorter). Year-to-year budget variations up to 10% are permitted without board approval. Water utilities must close out any existing Distribution System Improvement Charge before filing an IIP petition.

New definitions added for customer-generator facility, energization, energization time period, flexible interconnection or energization tariff, hosting capacity, interconnection time period, load capacity, gas public utility, in service, program, and water public utility. The definition of distributed energy resource was expanded to include electric vehicles, microgrids, fuel cells, and demand-side management measures.