Assemblywoman Katz to Introduce Legislation to Charge Data Centers for their Sky-High Electricity Usage to Repair NJ’s Decaying Grid

(TRENTON) – Assemblywoman Andrea Katz continues to lead the efforts to rein in the high utility bills facing New Jerseyans. Katz has previously introduced legislation to limit rate increases, close loopholes utilities exploit to pay themselves ratepayer-funded bonuses, provide more transparency into the utility companies, and build more energy sources. She has also grilled utility company executives on their role in this crisis during Assembly committee hearings. Now, she is introducing legislation to impose a surcharge on data centers that will be dedicated to modernizing our crumbling grid. Experts have noted that data center load growth has tripled over the last decade and will double or triple again by 2028 because of AI, Crypto, and other usages.

“There is more than one reason for the sky-high utility bills we are all facing, but the giant data centers are playing an enormous role,” said Assemblywoman Andrea Katz (D-Chesterfield). “These data centers come into our communities, create almost no jobs, and cause our electric bills to go through the roof. This surcharge allows them to contribute to the communities they are coming into.”

The crumbling grid is another major reason for our electric bill spikes. It will take a massive investment to modernize it and ensure reliability.

“We have known that grid modernization will be critical for a long while, but this need has been ignored. A major reason is simply the cost. That’s why my bill will create a dedicated fund that only goes to grid modernization and bringing down utility costs,” said Katz. “The data centers coming into our communities can afford to help us pay for the maintenance needed for the grid. It should not be on the backs of hardworking families who have seen their utility bills spike at no fault of their own.”

News From Around the Web

The Political Landscape