New Jersey and Connecticut Move Forward with Grid Modernization and Carbon Cap Reductions

The New Jersey Board of Public Utilities scheduled a public stakeholder meeting for July 30 to review a proposed statewide Virtual Power Plant (VPP) program. The draft framework would aggregate customer‑owned distributed energy resources—such as residential batteries, smart thermostats and electric‑vehicle chargers—into coordinated networks that can provide grid services during peak demand, aiming to improve reliability, lower electricity costs and reduce the need for new generation assets. Participants could receive compensation through bill credits, rebates or direct payments, and the board intends to incorporate lessons from existing VPP programs in other states.

Separately, Connecticut’s Department of Energy and Environmental Protection opened a comment period on a regulatory amendment to further lower the state’s carbon allowance cap under the Regional Greenhouse Gas Initiative (RGGI). The proposal seeks a 60‑90 % reduction in allowances between 2027 and 2037, with provisions to relax the cap if electricity prices rise. Since 2009, RGGI auctions have returned about $627 million to Connecticut for energy‑efficiency projects, EV rebates and Green Bank funding, with recent proceeds earmarked for ratepayer refunds. The department argues that tighter caps will incentivize fossil‑fuel generators to improve efficiency and support non‑carbon sources like the Millstone Nuclear Power Plant.