(The Center Square) \u2013 As electricity demand rises amid concerns about future supply, officials are pushing to modernize the region\u2019s energy mix as reliability and affordability hang on the line.\u00a0<\/p>\n
New Jersey lawmakers are among those in several states trying to add oversight to load forecasting \u2013 the process utilities and grid operators use to predict future electricity demand and plan accordingly.\u00a0<\/p>\n
Accurate forecasts matter as AI-powered data centers drive rapid demand growth. Underestimating demand can strain reliability, while overestimating it can lead to unnecessary spending that ultimately shows up in customers\u2019 bills.\u00a0<\/p>\n
Bill A6156<\/a> recently advanced unanimously from the Assembly Telecommunications and Utilities Committee and was referred to the Appropriations Committee. The bill would require the Board of Public Utilities, or BPU, to collect and analyze load forecasting information and coordinate with regional grid operator PJM Interconnection to improve accuracy and prevent duplication.<\/p>\n Sponsors \u2013 Assembly Democrats Tennille McCoy-Hamilton Square, Dave Bailey, Jr.-Glassboro, and Mitchelle Drulis-Flemington \u2013 say the measure responds to concerns raised during legislative energy affordability hearings, including the risk that large projects like data centers can be overcounted when developers submit requests to multiple utilities, creating so-called \u201cghost projects<\/a>.\u201d<\/p>\n \u201cAccurate load forecasting is critical to keeping the lights on and energy costs affordable,\u201d McCoy said in a press release.<\/p>\n Baily added, \u201cOur residents should not be paying higher electric bills because of flawed or duplicative data. By ensuring the BPU has full visibility into load-forecasting information, we can reduce inefficiencies and protect consumers from unnecessary costs.\u201d<\/p>\n Likewise, Senate Bill 4938, titled the \u201cLoad Forecast Accountability Act,\u201d would also require the BPU to review electricity load forecasting.<\/p>\n Todd Snitchler, president and CEO of the Electric Power Supply Association, told The Center Square New Jersey\u2019s bills are very similar to Pennsylvania\u2019s Load Forecast Accountability Act, or House Bill 1924 \u2013 of which some components were rolled into the state budget<\/a> in November.<\/p>\n They seek to do virtually the same thing, he said, which is to \u201cadd some teeth to the load forecasting question and make sure we\u2019re aiming at a target that makes sense.<\/p>\n Snitchler said he thought making data-driven decisions that will inform policymakers is a good step, noting newly elected Gov. Mikie Sherrill\u2019s commitment to minimizing the impact on customers.\u00a0<\/p>\n PJM, he said, has figured out how to apply more stringent criteria to separate likely-to-be-built projects from speculative ones, which should improve planning and clarify whether the region was truly short of capacity in the last auction<\/a>.\u00a0<\/p>\n \u201cYou have to give credit where it\u2019s due,\u201d Snitchler said. \u201cWe haven\u2019t had the lights go out. It may not be as artful as some would like, but we have managed to ensure a reliable system that continues to deliver results that I think are valuable to consumers of all types.\u201d<\/p>\n Jeffrey Shields, PJM spokesman, told The Center Square, they support all viable efforts to improve load forecasting and that over the past few years, as requests to connect large-load data centers have increased, the grid operator has made a number of improvements to its forecasting process<\/a>.\u00a0<\/p>\n PJM relies on its load-serving entities \u2013 utilities and retail suppliers \u2013 who actually connect projects like data centers to the grid, because they see the interconnection and service requests firsthand.\u00a0<\/p>\n Annually, in July, those entities report new large load requests, which PJM uses as a key variable in its long-term load forecast.\u00a0<\/p>\n