Bill Text: NJ A2104 | 2010-2011 | Regular Session | Introduced
Bill Title: Permits electric public utilities to earn 15% rate of return on investment in, and installation of, certain voltage regulation technologies.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-02-11 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A2104 Detail]
Download: New_Jersey-2010-A2104-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
Assemblyman JACK CONNERS
District 7 (Burlington and Camden)
SYNOPSIS
Permits electric public utilities to earn 15% rate of return on investment in, and installation of, certain voltage regulation technologies.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning electric public utilities and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Upon filing a petition with the Board of Public Utilities under R.S.48:2-21, section 5 of P.L.1995, c.180 (C.48:2-21.28), or section 13 of P.L.2007, c.340 (C.48:3-98.1), an electric public utility may, from its ratepayers, recover the costs of, and earn a 15% rate of return on, its purchase and installation of voltage regulation technologies which reduce energy consumption, improve electric power grid efficiency, raise or lower voltage dynamically, and are at least 99 percent efficient across at least 90 percent of the load curve. As used in this section, "load curve" means the amount of electric power supplied over a period of time; the relationship of the values for these variables is frequently represented as a curve on a graph.
2. This act shall take effect immediately.
STATEMENT
This bill provides an incentive to electric public utilities that invest in and install voltage regulation technologies which reduce energy consumption, improve electric power grid efficiency, raise or lower voltage dynamically, and are at least 99 percent efficient across at least 90 percent of the load curve. Specifically, the bill permits electric public utilities, upon filing a petition with the Board of Public Utilities under R.S.48:2-21, section 5 of P.L.1995, c.180 (C.48:2-21.28), or section 13 of P.L.2007, c.340 (C.48:3-98.1), to recover the costs of and earn a 15% rate of return from its ratepayers on the costs associated with the purchase and installation of such voltage regulation technologies. As of October 2009, the State's four investor-owned electric public utilities earn a rate of return of 9.75% on all capital investments.
This bill would not require utilities to utilize voltage regulation devices; it simply allows electric utilities to have the option to use voltage regulation devices where they make the most sense. These devices are now available and make it possible for electric utilities to reduce a building's energy consumption by six to eight percent by installing a voltage regulation device on the building's meter box. Electric utilities send out power to their customers from substations. Because power is lost over time on a utility's transmission lines, the utility has to send out more power than their customers need to assure that customers at the end of the line get at least 114 volts delivered to them. Thus, customers who live close to a substation might receive 124 volts, customers further down the line might receive 120 volts, etc. By installing a voltage regulation device on a customer's meter box, utilities can regulate the voltage that the customer draws off the line to assure that the customer only receives the required 114 volts, rather than 124, 120, etc. This six to eight percent savings is conserved, as the customer now uses 114 volts for whatever purpose they use electricity for, rather than unnecessarily drawing a higher voltage off the line.
Voltage regulation devices reduce energy consumption, increase energy efficiency, reduce greenhouse gas emissions, decrease our dependence on foreign oil, reduce the need to construct costly new power plants, and aid in the adoption of renewable energy technologies, such as wind, solar, etc. With the implementation of this technology, significant reductions can be realized in both energy consumption and carbon emissions.
