Deojay is scheduled to return to court Friday, which will give authorities in Connecticut and Massachusetts time to decide who has jurisdiction in the case.
Nilan's body was found yesterday morning in a shed on the Massachusetts border.
State police said Caroll Spinney, who plays Big Bird and Oscar the Grouch on the TV show "Sesame Street, had nothing to do with the woman's death. They said Deojay had done work on Spinney's sprawling property in the past.
Today, Windham State's Attorney Patricia Froehlich asked Superior Court Judge Michael Riley to set Deojay's bond at $1 million, but Riley set it at $500,000.
Froehlich said investigators plan to seek homicide charges.
Riley said things would have been different had Deojay called 911.
Deojay was arrested yesterday after he was discharged from a hospital where he underwent a medical evaluation. Authorities would not say why he went to the hospital.
Nilan was abducted along her jogging route in Woodstock, Vance said. State police are still trying to determine whether Deojay knew she jogged there regularly.
Nilan's body was sent to the Massachusetts medical examiner's office for an autopsy, and calls seeking comment were placed to Massachusetts authorities.
Police said that among other evidence, they found an invoice at the scene of the abduction that led them to Deojay.
Woodstock, home to about 8,000 people, is about 40 miles northeast of Hartford and 30 miles southwest of Worcester, Mass.