NJ Launches PowerUp NJ Virtual Power Plant
New Jersey regulators take first step toward a voluntary statewide program that pays customers to cut peak electricity use.
Updated on Nov. 12, 2026 in Utilities
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The New Jersey Board of Public Utilities took the first step toward establishing PowerUp NJ, a voluntary statewide program that compensates customers for reducing electricity demand during peak periods. Four utilities must implement interim programs for customers by Oct. 1, 2027.
Why it matters
The program follows Gov. Mikie Sherrill's Executive Orders No. 1 and 2, which declared an energy affordability emergency and directed the board to develop a virtual power plant. A preliminary staff analysis estimates that reducing peak demand by 3% could avoid roughly $60 million in annual system capacity costs.
A preliminary NJBPU staff estimate puts avoided system capacity costs at about $60 million per year if peak demand falls 3%. The estimate has not yet been validated by the interim programs, which will run for two years to gather data.
The players
New Jersey Board of Public Utilities
The state agency that regulates electric, gas, water and telecommunications utilities in New Jersey and oversees ratepayer programs.
Mikie Sherrill
The Governor of New Jersey, who issued executive orders declaring an energy affordability emergency and directing the creation of a virtual power plant program.
The details
PowerUp NJ coordinates customer-owned devices such as smart thermostats, home batteries, electric vehicle chargers and smart water heaters to reduce or shift electricity use when the grid is under the greatest strain. Most adjustments happen automatically, and participants can choose which devices and events to include. Businesses are also eligible to receive compensation for reducing consumption during peak periods.
Timeline
Nov. 12, 2026: NJBPU announced its first step toward establishing PowerUp NJ.
Oct. 1, 2027: Atlantic City Electric, Jersey Central Power & Light, Public Service Electric & Gas and Rockland Electric must implement interim programs.
Two years after Oct. 1, 2027: Interim programs end, with utilities measuring peak reductions and cost savings.
Roadmap
PowerUp NJ operationalizes the virtual power plant directive in Executive Orders No. 1 and 2, moving New Jersey from declared emergency to a concrete demand-response program. The interim two-year pilots will determine whether the statewide program scales beyond the initial utility territories.
New Jersey households and businesses with smart thermostats, home batteries, EV chargers or smart water heaters could be paid for reducing use during peak periods. Participation is voluntary, and most device adjustments occur automatically once enrolled.
The takeaway
Reducing peak demand can lower system costs that feed into bills, so customers with flexible devices may be able to benefit financially. Watch for utility enrollment announcements ahead of the Oct. 1, 2027 deadline.
What happens next
Utilities must implement the interim PowerUp NJ programs for customers by Oct. 1, 2027, and will then measure peak demand reductions and cost savings to inform a long-term statewide program.
Further reading
For more on how grid demand and utility programs shape bills, explore Utilities coverage on Wisevoter.
More information
Learn enrollment details on the PowerUp NJ program information page.
Source note: This article includes information reported by WRNJ Radio.
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Would you enroll your home devices in a state program paying you to reduce power use?
