Sponsored by:
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
Co-Sponsored by:
Assemblyman Sauickie
SYNOPSIS
Concerns electric and gas public utility rate setting procedures and economic impact studies.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning electric and gas public utility rates and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
“Board” means the New Jersey Board of Public Utilities or any successor agency.
“Electric public utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State.
“Fixed charge” means any charge or fee assessed by an electric public utility or a gas public utility against a utility customer that is not based on the amount of electricity or the volume of natural gas consumed by the customer.
“Gas public utility” means a public utility, as that term is defined in R.S.48:2-13, that distributes natural gas to end users within the State.
“Income-graduated methodology” means assessing a charge or fee against a customer based on the customer’s income and where a lower-income customer pays a smaller charge than a higher-income customer.
“Volumetric charge” means any charge or fee assessed by an electric public utility or a gas public utility against a utility customer based on the amount of electricity or the volume of natural gas consumed by the customer.
b. Notwithstanding any law, rule, regulation, or order to the contrary, the board shall not authorize any rate increase by an electric public utility or a gas public utility that implements an income-graduated methodology for a fixed charge or volumetric charge assessed by an electric public utility or a gas public utility.
c. Notwithstanding any law, rule, regulation, or order to the contrary, the board shall perform an economic impact study that includes a review of the impact of a proposed rate increase on ratepayers under each schedule prior to approving any rate increase by an electric public utility or a gas public utility.
d. The board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this section.
2. This act shall take effect immediately.
STATEMENT
This bill prohibits the Board of Public Utilities (board) from approving any rate increase sought by any electric public utility or gas public utility that implements an income-graduated methodology for a fixed charge or volumetric charge, as those terms are defined in the bill. The bill further requires the board to perform an economic impact study that includes a review of the impact of a proposed rate increase on ratepayers under each schedule prior to approving any rate increase by an electric public utility or a gas public utility.