Societal Benefits Charge Credit Program
Societal Benefits Charge - SBC Credit Program
The SBC Credit Program allows commercial and industrial (C&I) ratepayers to establish a credit against their SBC contributions. The credit will be equal to one-half of the costs incurred for the purchase and installation of CEP-supported energy efficiency products and services in the preceding calendar year, and up to 50% of the SBC contributions for a given year, per utility account. Credits will be issued upon project completion and verification that all program requirements are met. The credits will be issued based on the customer's prior year payment of the SBC.
What is the Societal Benefits Charge?
New Jersey electric and gas utilities' rates including funding for programs that provide societal benefits such as low income programs, gas plant remediation, nuclear plant decommissioning, social programs such as the Universal Service Fund and Lifeline, and the Clean Energy Program (CEP). New Jerseys' 1999 Electric Discount and Energy Competition Act (EDECA) authorized the Board of Public Utilities to permit utilities to continue collecting funds for these types of programs in a restructured utility market through a "societal benefits charge" or SBC.
On January 17, 2012, Governor Christie signed into a law a bill (A2528/S2344) that allows C&I ratepayers to establish a credit against SBC contributions. Shortly after the Act was passed, Board Staff convened a stakeholder process to develop recommendations for administration of the SBC Credit Program. The process was informed by Staff's analysis of the CEP currently in place as well as the input from the seven electric and gas investor owned utilities and other public stakeholders. An initial Straw Proposal was developed and issued for public comment and discussion. A revised Straw Proposal was then developed based on input received. The Board will next commence a rulemaking procedure and a Rule Process Hearing was held on April 2, 2013. Staff will then propose a draft rule to the Board for consideration.
The December 20, 2012 Board Order, Docket No. EO12100940 can be referenced here.