New Jersey is moving closer to adopting wide-ranging programs promoting the deployment of electric vehicles and energy storage throughout the state.

The New Jersey Board of Public Utilities held two days of hearings last week to hear comments on Public Service Electric and Gas’ petition to implement the EV and energy storage portion of its Clean Energy Future program. Commenters at the hearing were generally in support of the petition.

The BPU approved the company’s plan last month to commit $1 billion toward energy efficiency investments over the next three years.

Joseph Accardo, vice president of regulatory affairs for PSE&G parent Public Service Enterprise Group, provided an overview of the EV and storage portion, saying the initiatives will bring the benefits of cleaner air, more renewable resources and a more reliable electrical grid through electrification of transportation and “targeted, cutting-edge energy solutions.”

“PSE&G’s electric vehicle filing supports the development of electric vehicle infrastructure and energy storage solutions in New Jersey to benefit customers, meet state goals and spur the state’s green economy,” Accardo said.

EV Charger Buildout

PSE&G originally filed its petition with the BPU in October 2018. The objective of the program is to accelerate EV adoption and deployment of storage technology in New Jersey, supporting the goals set forth in the state’s energy master plan, Accardo said. (See NJ Unveils Plan for 100% Clean Energy by 2050.)

The plan calls for the installation of nearly 40,000 EV charging stations across the state. As charging stations have grown in other states at a pace of purchase of vehicles, Accardo said, New Jersey ranks 45th in the country for stations per registered EV. He said PSE&G’s plan emphasizes that the state needs to provide consumers with easy access to charging infrastructure.

For the EV portion of the program, PSE&G is seeking BPU approval to commit up to $261 million in direct investments over a period of six years. It includes a $93 million residential subprogram that will pay for the cost of a home EV charger and installation for EV users, with a cap of $2,000 per installation.

The proposal includes a $39 million mixed-use charging subprogram and a $62 million DC fast-charging subprogram. It also features a $45 million vehicle innovation subprogram to promote EV use, including a $33 million electric school bus project and $12 million to fund other vehicle electrification projects.

Approving the program would initially increase electric rates to customers by about $9.7 million over an 18-month period, PSE&G said, with rate recovery continuing until 2064. A peak revenue requirement would occur in the 2024-2025 time frame.

Storage Component

New Jersey’s Clean Energy Act calls for 600 MW of energy storage by 2021 and 2,000 MW by 2030.

For the storage portion of its program, PSE&G is seeking approval to commit up to $109.4 million in direct investment over a period of six years. It includes subprograms to smooth intermittent solar generation ($13.1 million), resolve forecasted distribution grid overload conditions ($38.6 million), deploy mobile battery storage devices ($20 million), develop microgrids for critical facilities ($25.7 million) and facilitate peak reduction for public sector facilities ($11.9 million).

Approval of the program would increase rates by about $700,000 over an 18-month period. Rate recovery for the program would continue until 2045, with a peak revenue requirement in the 2025-2026 time frame.

Stakeholder Responses

A typical PSE&G residential electric customer would see a $1.24 (0.09%) increase in their annual bill, the company said.

Testimony at the BPU hearing featured several hours of stakeholder comments from across the state, with all parties expressing support for PSE&G’s proposal.

James Sherman, vice president of Climate Change Mitigation Technologies (CCMT), a New Jersey-based developer of medium- and heavy-duty battery electric truck projects, provided testimony on the EV program. Sherman said the possibility exists to make New Jersey “the East Coast center” of the zero-emission, medium-duty truck and bus industry.

Sherman said his company is closely following developments in California’s EV program, especially within the California Energy Commission. (See California Looks to EVs for Grid Resilience.) He said the PSE&G subprogram is consistent with what is happening in California and will accelerate charging infrastructure to deploy more EVs.

The school bus fund and the vehicle innovation portion are also key, Sherman said, providing money for towns and cities to convert to EV fleets. CCMT is working on building an EV bus and truck manufacturing plant in Patterson, he said, with operations to begin in 2021 if sufficient orders and state-level funding are in place. The plant would add 45 new jobs at full production, with 500 trucks and buses being manufactured per year.

Sherman said all the EV programs fit like a puzzle, creating a new clean energy economy in the state.

“When put together, we get advanced, zero-emission vehicle technologies, job creation and, hopefully, increased grid reliability,” Sherman said. “We get school buses made in New Jersey and driven in New Jersey. We get immediate clean air benefits at the community level.”

Shihab Kuran, CEO of Power Edison, a New Jersey-based clean energy solutions company focused on energy storage, said he is in “full support” of PSE&G’s filing, though he called the storage subprogram a “very, very small step” toward increased reliability. He said he would like to see it approved quickly to move on to other programs with “meaningful megawatts” in helping New Jersey meet its goals.

“We are far behind other states in the U.S. when it comes to energy storage,” Kuran said. “We have set up our own targets. … But frankly, I don’t see a path for how we can get to 600 MW by 2021. We should have started the work two to three years ago.”

Trenton Mayor Reed Gusciora also spoke in support of the programs. He said his city is made up of dense areas experiencing the pressures of urban environments, including pollution.

Gusciora said the concept of environmental justice is important to the residents of Trenton, leading to “fairness, opportunity and a better quality of life.” Steps have been taken by companies and communities to be more environmentally friendly, he said, but only a small portion can be done on a local level to solve current environmental issues.

The mayor said proposals like PSE&G’s are a step in the right direction, spurring statewide interest in EVs that will lead to better air quality.

“PSE&G’s proposal to deploy nearly 40,000 EV charging stations across the state is the kind of initiative that can deliver public health and environmental and economic benefits to all residents across New Jersey,” Gusciora said.