SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 4166

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 8, 2026

      The Senate Economic Growth Committee reports favorably and with committee amendments Senate Bill No. 4166.

      As amended and reported, this bill requires the express verbal, electronic, or written consent of a residential customer for any material change to the residential customer’s third-party energy supply contract (contract) for electric generation service or gas supply service in the State with an electric power supplier or a gas supplier (supplier), as appropriate.

      However, the bill permits a supplier to renew or extend a contract without obtaining the express consent of the residential customer if the renewal or extension:  (1) does not convert a fixed-price product to a variable-price product;  (2) does not convert a contract with a defined term length to a month-to-month or automatically renewing variable-rate contract; (3) does not increase the contract price by more than 20 percent above the price in effect during the final billing cycle of the existing contract; and (4) permits the customer to cancel the renewed or extended contract within 60 days following its effective date without any cancellation fee, early termination fee, administrative charge, or other financial penalty.

      The bill further requires that prior to a renewal or extension of a contract without the express consent of the residential customer, a supplier is to provide two written notices based on timing outlined in the bill.  The notices are to contain information on:  (1) current pricing; (2) proposed pricing; (3) the percentage difference between the current and proposed pricing; (4) the customer’s right to enroll in an alternate service; and (5) the procedure for declining the renewal or extension.

      Under the bill, “material change” means a change to the terms or duration of any third-party energy supply contract, including, but not limited to, a change in price or a change to or from fixed or variable pricing.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  define the term “supplier”;

      (2)  permit an electric power supplier or gas supplier to renew or extend a third party energy supply contract without the express consent of the residential customer if:  (a) the renewed or extended contract does not convert a fixed-price product to a variable-price product, convert a contract to a month-to-month or automatically renewing variable-rate contract, or increase the contract price by more than 20 percent above the price in effect during the final billing cycle of the existing contract; and (b) the customer is permitted to cancel a contract that was renewed or extended without the customer's express consent within 60 days following the effective date of the renewal or extension, and to enroll in an alternate service, without any cancellation fee, early termination fee, administrative charge, or other financial penalty; and

      (3)  require an electric power supplier or gas supplier to provide two written notices, by mail or electronic notification, in accordance with the customer's preferred method of contact, prior to the renewal or extension of a contract without the express consent of the residential customer:  the first no earlier than 60 days before the effective date of the renewal or extension; and the second no more than 60 days and no less than 30 days before the effective date of the renewal or extension.  The notices are required to contain information on:  (a) current pricing; (b) proposed pricing; (c) the percentage difference between the current and proposed pricing; (d) the customer’s right to enroll in an alternate service; and (e) the procedure for declining the renewal or extension;

      (4)  update the bill's synopsis; and

      (5)  make technical changes.