In February, 2023, New Jersey’s governor signed Executive Order No. 317, directing the New Jersey Board of Public Utilities (BPU) to plan for the Future of the Natural Gas Utility in New Jersey.
The Order calls for the development of natural gas utility plans that reduce emissions from the natural gas sector to levels that are consistent with achieving the State’s 50 percent reduction in greenhouse gas emissions below 2006 levels by 2030. The Order calls for the consideration of a “clean heat” standard, which may include accelerated energy efficiency and peak demand reduction targets, enhanced building electrification targets, and leak minimization; a shrinking gas customer base; State decarbonization policies; minimizing investment in new infrastructure so as to reduce risk of stranded asset costs; the elimination of subsidies that encourage unnecessary investment in natural gas infrastructure that is likely to result in stranded costs to customers; and electric grid readiness to handle electrification of building heating and cooling, as well as transportation, including recommendations for shifting investment funding from natural gas to electric system infrastructure upgrades.
Eighteen months from the date of the Order, the BPU is directed to prepare a report summarizing findings and recommendations.