New Jersey § 48:3-98

§ 48:3-98.

a. Notwithstanding the provisions of any other law or rule or regulation to the contrary: (1) an electric public utility or a gas public utility may provide and invest in energy

efficiency and conservation programs in its respective service territory on a regulated

basis pursuant to this section, regardless of whether the energy efficiency or conservation

program involves facilities on the utility side or customer side of the point of interconnection; (2) an electric public utility or a gas public utility may invest in Class I renewable

energy resources, or offer Class I renewable energy programs on a regulated basis

pursuant to this section, regardless of whether the renewable energy resource is located

on the utility side or customer side of the point of interconnection; and (3) the board may provide funding for energy efficiency, conservation, and renewable

energy improvements through the societal benefits charge established pursuant to section

12 of P.L.1999, c. 23 ( C.48:3-60 ), the retail margin on certain hourly-priced and larger non-residential customers

pursuant to the board's continuing regulation of basic generation service pursuant

to sections 3 and 9 of P.L.1999, c. 23 ( C.48:3-51 and 48:3-57 ), or other monies appropriated for such purposes. The board may also direct electric public utilities and gas public utilities to

undertake energy efficiency, conservation, and renewable energy improvements, and

shall allow the recovery of program costs and incentive rate treatment pursuant to

subsection b. of this section. b. An electric public utility or a gas public utility seeking cost recovery for any

program pursuant to this section shall file a petition with the board to request cost

recovery. In determining the recovery by electric public utilities and gas public utilities

of program costs for any program implemented pursuant to this section, the board may

take into account the potential for job creation from such programs, the effect on

competition for such programs, existing market barriers, environmental benefits, and

the availability of such programs in the marketplace. Unless the board issues a written order within 180 days after the filing of the

petition approving, modifying or denying the requested recovery, the recovery requested

by the utility shall be granted effective on the 181st day after the filing without

further order by the board. Ratemaking treatment may include placing appropriate technology and program cost

investments in the respective utility's rate base, or recovering the utility's technology

and program costs through another ratemaking methodology approved by the board, including,

but not limited to, the societal benefits charge established pursuant to section 12

of P.L.1999, c. 23 ( C.48:3-60 ). All electric public utility and gas public utility investment in energy efficiency

and conservation programs or Class I renewable energy programs may be eligible for

rate treatment approved by the board, including a return on equity, or other incentives

or rate mechanisms that decouple utility revenue from sales of electricity and gas. c. Within 120 days after the date of enactment of P.L.2007, c. 340 ( C.26:2C-45 et al.), the board shall issue an order that allows electric public utilities and

gas public utilities to offer energy efficiency and conservation programs, to invest

in Class I renewable energy resources, and to offer Class I renewable energy programs

in their respective service territories on a regulated basis. The board's order shall be reflected in rules and regulations thereafter to be adopted

by the board pursuant to the “Administrative Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ). d. As used in this section: “ Class I renewable energy program ” means any regulated program approved by the board pursuant to this section for the

purpose of facilitating the development of Class I renewable energy in the State. “ Energy efficiency and conservation program ” means any regulated program, including customer and community education and outreach,

approved by the board pursuant to this section for the purpose of conserving energy

or making the use of electricity or natural gas more efficient by New Jersey consumers,

whether residential, commercial, industrial, or governmental agencies. “ Program costs ” means all reasonable and prudent costs incurred in developing and implementing energy

efficiency, conservation, or Class I renewable energy programs approved by the board

pursuant to this section. These costs shall include a full return on invested capital and foregone electric

and gas distribution fixed cost contributions associated with the implementation of

the energy efficiency, conservation, or Class I renewable energy programs until those

cost contributions are reflected in base rates following a base rate case if such

costs were reasonably and prudently incurred.