ASSEMBLY TELECOMMUNICATIONS AND UTILITIES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5959

STATE OF NEW JERSEY

DATED:  DECEMBER 11, 2025

      The Assembly Telecommunications and Utilities Committee reports favorably Assembly Bill No. 5959.

      As reported, this bill requires the Governor’s annual budget message to include a report of the revenues and expenditures related to the societal benefits charge.  This bill is intended to provide greater transparency regarding the amount of revenues generated by the societal benefits charge and the purposes for which these revenues are expended and allocated.

     Imposed under P.L.1999, c.23, the societal benefits charge is embedded in customer bills for electricity and natural gas service.  The charge is collected by each electric and gas public utility and remitted to the Board of Public Utilities (BPU).  The proceeds of the societal benefits charge finance energy assistance programs administered through the Universal Services Fund; energy demand management programs, energy efficiency programs, and renewable energy programs administered through the Clean Energy Program; energy consumer education programs; nuclear plant decommissioning; and manufactured gas plant remediation.

     The bill requires the report to include, for the five most recently completed fiscal years and the current fiscal year, information concerning the total revenues generated by the societal benefits charge in each fiscal year, as well as an itemized statement of the amount of societal benefits charge revenues allocated, committed for expenditure, and expended for:  (1) all energy demand management programs, energy efficiency, conservation, and renewable energy improvements; (2) energy assistance programs supported through the Universal Services Fund; and (3) the incentive programs supported through the Plug-in Electric Vehicle Incentive Fund.

     Current law does not establish a uniform societal benefits charge rate for all electric and gas public utilities.  Each electric and gas public utility determines, with the approval of the BPU, a rate for each component (i.e., utility assistance programs or manufactured gas plant remediation) to be funded through the societal benefits charge.  The bill also requires the report to include information regarding the total amount of revenue retained by each electric and gas public utility from each component of the societal benefits charge, as approved by the board.