Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
Requires BPU to establish best practices and to assess electric public utilities’ compliance with BPU best practices during BPU’s review of rate increase.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the review of electric public utility rate increases 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 Board of Public Utilities.
“Electric public utility” or “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.
b. The board shall identify and establish best practices for electric public utilities based on national, State, and industry standards concerning:
(1) electric generation;
(2) electric transmission;
(3) operations and maintenance, including emergency preparedness and response and vegetation maintenance;
(4) consumer education;
(5) business management; and
(6) affordability and cost containment.
c. The board shall establish objective benchmarks by which to assess an electric public utility’s compliance with the board’s best practices established pursuant to subsection b. of this section. The board shall determine what constitutes an electric public utility’s adequate progress towards meeting the benchmarks.
d. While reviewing an electric public utility’s request to increase its rates, the board shall assess the utility’s efforts to comply, and actual compliance, with the board’s best practices established pursuant to subsection b. of this section. While conducting its assessment, the board shall consider, at a minimum:
(1) the utility’s progress towards, or actual satisfaction of, the benchmarks established pursuant to subsection c. of this section; and
(2) how the utility’s compliance with the board’s best practices compares to that of other utilities in New Jersey.
The board shall not approve a request to increase any component of an electric rate for an electric public utility that fails to demonstrate at least adequate progress towards meeting the benchmarks established pursuant to subsection c. of this section, as assessed by the board at the time of the electric public utility’s base rate case filing. In the event the board denies an electric public utility’s petition for a rate increase for failing to demonstrate adequate progress towards meeting the benchmarks established pursuant to subsection c. of this section, the board shall provide the electric public utility a copy of its best practices benchmark compliance assessment, which assessment shall include remedial action steps for the electric public utility to take to demonstrate adequate progress.
e. The board shall make periodic revisions to the best practices established pursuant to subsection b. of this section as necessary to reflect the current national, State, and industry standards.
f. The board shall publish its best practices established pursuant to subsection b. of this section on the board’s Internet website to be accessible to utilities.
g. 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 for the implementation of this act.
2. This act shall take effect immediately.
STATEMENT
This bill requires the Board of Public Utilities (board) to establish best practices for electric public utilities and to consider a utility’s compliance with such standards when reviewing an application for a rate increase.
Under the bill, the board is required to identify and establish best practices for electric public utilities based on national, State, and industry standards concerning: (1) electric generation; (2) electric transmission; (3) operations and maintenance, including emergency preparedness and response and vegetation maintenance; (4) consumer education; (5) business management; and (6) affordability and cost containment.
The board is required to establish objective benchmarks by which to assess an electric public utility’s compliance with the board’s best practices. The board is to determine what constitutes an electric public utility’s adequate progress towards meeting the benchmarks.
While reviewing an electric public utility’s request to increase its rates, the board is required to assess the utility’s efforts to comply, and actual compliance, with the board’s best practices. While conducting its assessment, the board is to consider, at a minimum: (1) the utility’s progress towards, or actual satisfaction of, the benchmarks established pursuant to the bill; and (2) how the utility’s compliance with the board’s best practices compares to that of other utilities in New Jersey.
Under the bill, the board is prohibited from approving a request to increase any component of an electric rate for an electric public utility that fails to demonstrate at least adequate progress towards meeting the benchmarks, as assessed by the board at the time of the electric public utility’s base rate case filing. In the event the board denies an electric public utility’s petition for a rate increase for failing to demonstrate adequate progress towards meeting the benchmarks, the board is required to provide the electric public utility a copy of its best practices benchmark compliance assessment, including remedial action steps for the electric public utility to take to demonstrate adequate progress.
The board is required to make periodic revisions to the best practices as necessary to reflect the current national, State, and industry standards and to publish the best practices on its Internet website.