NEW JERSEY: State Approves Plan to Pay Homes and Businesses for Easing Power Demand
New Jersey's PowerUp program will pay eligible customers for reducing peak electricity demand and using battery storage to support the grid. Utility plans are due in February 2027, with interim virtual power plants set to operate by October 2027.
New Jersey utility regulators approved PowerUp NJ on Thursday, creating programs designed to pay eligible homes and businesses for cutting electricity demand during peak periods or using batteries to support the grid.
The Board of Public Utilities' November 12 order establishes an interim virtual power plant program and the first block of a distributed battery-storage program. Virtual power plants coordinate resources such as smart thermostats, electric-vehicle chargers and batteries to reduce demand when the power system is under strain.
The order directs Atlantic City Electric, Jersey Central Power & Light, PSE&G and Rockland Electric to file their proposed programs by February 12, 2027. The interim virtual power plant programs must be operating by October 1, 2027.
Battery-program enrollment is to open within 60 days after regulators approve each utility's filing. Thursday's vote does not mean customers can enroll immediately, and payment amounts will depend on the approved program rules and measured performance.
The board says PowerUp NJ is intended to reduce peak demand, ease capacity and transmission cost pressures, and improve grid flexibility. Those are program goals, not a guarantee that every customer's electricity bill will fall.
Customers should watch their electric utility and the Board of Public Utilities for enrollment details as the approved programs are put in place.