Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Increases penalties for energy "slamming" practices.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning penalties for energy "slamming" practices and amending P.L.1999, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 34 of P.L.1999, c.23 (C.48:3-83) is amended to read as follows:
34. Any person who violates any provision of [this act] P.L.1999, c.23 (C.48:3-49 et al.) shall be liable for a civil penalty of not more than $5,000 for the first offense, except for a violation of section 37 of [this act] P.L.1999, c.23 (C.48:3-86), for which a person shall be liable for a civil penalty of not more than [$10,000] $20,000 for the first offense, and not more than [$25,000] $50,000 for the second and each subsequent offense, for each day that the violation continues. Any civil penalty which may be imposed pursuant to this section may be compromised by the board. In determining the amount of the penalty, or the amount agreed upon in compromise, the board shall consider: the nature, circumstances, and gravity of the violation; the degree of the violator's culpability; any history of prior violations; the prospective effect of the penalty on the ability of the violator to conduct business; any good faith effort on the part of the violator in attempting to achieve compliance; the violator's ability to pay the penalty; and other factors the board determines to be appropriate. The amount of the penalty when finally determined, or the amount agreed upon in compromise, may be deducted from any sums [owing] owed by the State to the person charged, or may be recovered, if necessary, in a summary proceeding pursuant to ["the penalty enforcement law," N.J.S.2A:58-1 et seq.] the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
The Superior Court shall have jurisdiction to enforce the provisions of "the penalty enforcement law" in connection with [this act] P.L.1999, c.23 (C.48:3-49 et al.).
(cf: P.L.1999, c.23, s.34)
2. This act shall take effect immediately.
STATEMENT
This bill increases civil penalties
for energy "slamming" practices from $10,000 for the first offense, and not
more than $25,000 for the second and each subsequent offense, to $20,000 for
the first offense, and not more than $50,000 for the second and each subsequent
offense. "Slamming" is a practice that involves unauthorized changes to a
customer's electric power or gas supplier.
This bill addresses growing concerns over certain third-party energy suppliers engaged in slamming practices. In the past year, certain third-party energy suppliers took advantage of an unusually cold winter to make changes to accounts without customers' knowledge or consent. A number of customers complained of unauthorized changes to their electric power or gas supplier which resulted in skyrocketing utility bills. This bill doubles civil penalties for slamming practices to discourage any third-party energy supplier from taking advantage of their customers in the future.