Bill > S2303

Introduced Session

This bill directs the Board of Public Utilities (board) to provide incentives for district energy collaboratives (DEC) and certain combined heat and power facilities. Under the bill, the board is to adopt standards which require electric public utilities (utilities) to offer non-discriminatory rates to a DEC. For each kilowatt-hour of electricity sold by the DEC for which the utility receives assigned PJM payments, the utility is to pay the DEC an amount equal to the then prevailing per kilowatt-hour basic generation service rate for fixed price customers, or if there is no such rate, a reasonably comparable amount determined by the board. The payments are to be made by the utility to the DEC on a monthly basis and may be made through a tariff or contract as determined by the utility. The bill provides that DECs that are connected to the distribution system may earn eligible energy credits or other applicable incentives. All DECs are to be licensed by the board, which is to adopt and implement a DEC licensing procedure within 30 days after the bill's effective date. Under the bill, the board is to issue a solicitation to advertise the availability of grants for projects to install or expand combined heat and power facilities owned or operated by commercial and industrial energy pricing class customers in this State. The solicitation is to indicate that grants are to be awarded on a first-come, first-served basis for projects that satisfy the criteria set for in the bill. The solicitation is to further provide that the amount of each grant is be a function of the kilowatt-hours of electricity and the number of British thermal units (Btu) per hour of thermal energy that the combined heat and power facility generates over a period of four years beginning with the facility's commencement of operation. The amount of the grant per kilowatt-hour and per Btu per hour is to be calculated so that a facility receives a grant in the amount of $6 for each percent of its electric capacity factor.

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John McKeon (D)*, 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/13/2026)

Official Document