New Jersey utility regulators are considering a statewide program that could pay residents for allowing connected home-energy devices to help reduce pressure on the electric grid. The proposal is still being developed, and state officials are accepting written public comments through August 17.

The New Jersey Board of Public Utilities calls the concept a virtual power plant. Instead of constructing one new generating facility, the program would coordinate thousands of smaller devices, including smart thermostats, home batteries and electric-vehicle chargers, when electricity demand is especially high.

For example, a participating thermostat might make a small temporary adjustment during a peak-demand period, while batteries or connected vehicles could supply or shift electricity when the grid needs support. NJBPU says participants could eventually receive bill credits, discounts or direct payments, although the payment structure and customer rules have not been finalized.

Why this matters to New Jersey residents

The proposal could give households another way to reduce energy costs while helping utilities manage high-demand periods. But residents should not interpret the announcement as a guaranteed bill reduction: New Jersey has not approved a final program, enrollment process or savings formula.

The discussion involves the four electric utilities identified by NJBPU: PSE&G, JCP&L, Atlantic City Electric and Rockland Electric.

The initiative followed Governor Mikie Sherrill’s Executive Order No. 2, which declared a statewide energy emergency and directed NJBPU to develop a virtual power plant program.

Important details remain open, including which devices would qualify, how customers would enroll, how much control participants would retain, how data would be protected and exactly how compensation would be calculated. The agency’s current materials describe a proposal for public review, not a completed customer program.

How residents can weigh in

NJBPU held a public meeting on July 30, but the written-comment period remains open. Written comments must be submitted by the August 17 deadline under BPU Docket QO26030099 through the BPU Public Document Search system, by mail to the Board secretary or through the email address listed in the agency’s official release.

Because those terms are not final, residents considering the proposal may want to ask how participation would affect normal device settings, whether an adjustment could be overridden, what customer data would be collected and whether compensation would outweigh any equipment or enrollment costs.

The full proposal and comment instructions are available from the New Jersey Board of Public Utilities.