NJ S618

New Jersey Board of Public Utilities must adopt interconnection standards for Class I renewable energy systems within 18 months, conforming to the Interstate Renewable Energy Council's 2019 Model Interconnection Procedures unless specific provisions are impractical for the state.

BPU will establish fixed "grid modernization fees" paid by renewable energy project owners to utilities, charged per kilowatt and potentially tiered by project size or energy type; residential net-metered systems of 10 kilowatts or less will pay no more than $50 per kilowatt for the first three years.

Electric utilities may recover interconnection costs exceeding grid modernization fee revenues from ratepayers through base rates or surcharges, subject to BPU approval, and may recover infrastructure upgrade costs if demonstrated necessary at rate case proceedings.

BPU must establish maximum interconnection cost thresholds per kilowatt for each fee category, with costs above the maximum ineligible for ratepayer recovery; both fees and cost caps may be adjusted every three years.

The standards must include enforcement provisions for interconnection timelines, including potential penalties and fee refunds for utilities missing deadlines, and BPU must report to the Governor and Legislature within 12 months of rule adoption on implementation and economic impacts.