Bill Text: NJ A5344 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes certain requirements for public utility rate increases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-20 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A5344 Detail]
Download: New_Jersey-2024-A5344-Introduced.html
Sponsored by:
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
SYNOPSIS
Establishes certain requirements for public utility rate increases.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning public utility rate increases, supplementing Title 48 of the Revised Statutes, and amending P.L.1983, c.454.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. As used in this section, "public utility" means a public utility as defined in R.S.48:2-13.
b. A public utility that has filed a petition with the Board of Public Utilities that will increase an individual rate, joint rate, toll, charge, or schedule thereof, shall notify its affected customers of the filing by bill insert or by publication in newspapers published and circulated in the affected service area or areas. The notice shall include, but not be limited to:
(1) a summary of the contents of the filing;
(2) the reasoning for the filing; and
(3) a statement of the filing's impact on affected customers.
2. (New section) a. As used in this section, "public utility" means a public utility as defined in R.S.48:2-13.
b. A public utility that has filed a petition with the Board of Public Utilities that will increase an individual rate, joint rate, toll, charge, or schedule thereof, shall send a written, plain language summary of the board order with the board's final decision on the public utility's petition to the public utility's affected customers. If the board order results in an increase to the public utility's existing individual rate, joint rate, toll, charge, or schedule thereof, the public utility shall send the summary to its affected customers 30 days prior to the effective date of the new rates. If the board order does not result in an increase to the public utility's existing individual rate, joint rate, toll, charge, or schedule thereof, the public utility shall send the summary to its affected customers within 14 days after the issuance of the board order.
3. Section 2 of P.L.1983, c.454 (C.48:2-32.6) is amended to read as follows:
2. a. (1) The provisions of any other law, rule, regulation, or order to the contrary notwithstanding, the board, or the Office of Administrative Law acting pursuant to subsection (c) of section 10 of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-10(c)), shall conduct as many of its public hearings held to review applications by public utilities other than municipal, county, or other local government owned companies not subject to the jurisdiction of the board for significant increases, changes, or alterations in their rate schedules, in the service area of the applicant as the board deems necessary or appropriate to afford the affected ratepayers the opportunity to monitor the decision-making process by which the rates are set. At least two public hearings shall be held in the service area with respect to any application except that, if substantial portions of the service area are located in more than one geographic region of the State, then at least two public hearings shall be held in the service area located in each of those geographic regions, under the terms and conditions specified in this subsection. One of the public hearings held in the service area, or one of the hearings held in each geographic area, as the case may be, shall be a hearing in which petitioners, respondents, and intervenors are parties. At the second hearing required by the provisions of this subsection, statements by objectors shall be permitted. All public hearings held pursuant to the provisions of this subsection shall be held at places which are easily accessible to the public with at least one hearing held during evening hours.
(2) As used in this subsection, "public utility" means "public utility" as defined in R.S.48:2-13.
b. On the day that the final public hearing is to be held in connection with any application, after which the recommended report and decision is to be filed in accordance with subsection (c) of section 10 of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-10(c)), the administrative law judge or the board, as the case may be, may require the parties to the proceedings to present a summary statement of their cases or defenses. After the presentation, statements by the objectors shall be permitted in order to accord persons not parties to the proceedings an opportunity to participate in the proceedings. If no presentation is made, objector's statements shall be permitted in any event before the conclusion of the hearing. The final public hearing shall be held in the service area.
c. (1) No later than 14 days after the conclusion of the final hearing held pursuant to this section, the board shall respond in writing to any questions submitted by a member of the public at any of the hearings held pursuant to this section, provided that the questions shall pertain to the public utility's application for significant increases, changes, or alterations in the public utility's rate schedules, which application is being considered at hearings held pursuant to this section.
(2) The board may 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 subsection.
(cf: P.L.2017, c.77, s.2)
4. This act shall take
effect immediately.
STATEMENT
This bill establishes certain requirements for public utility rate increases. Specifically, the bill requires a public utility that files a petition with the Board of Public Utilities (board) for a rate increase to notify the public utility's affected customers of the filing by bill insert or by publication in newspapers published and circulated in the affected service area or areas. The notice is to include, at a minimum: (1) a summary of the contents of the filing; (2) the reasoning for the filing; and (3) a statement of the filing's impact on affected customers.
In addition, the bill requires a public utility that files a petition with the board for a rate increase to send a written, plain language summary of the board order with the board's final decision on the public utility's petition to the public utility's affected customers. If the board order results in an increase to the public utility's existing individual rate, joint rate, toll, charge, or schedule thereof, the public utility is to send the summary to its affected customers 30 days prior to the effective date of the new rates. If the board order does not result in an increase to the public utility's existing individual rate, joint rate, toll, charge, or schedule thereof, the public utility is to send the summary to its affected customers within 14 days after the issuance of the board order.
Finally, the bill amends current law to require the board to respond in writing to any questions submitted by a member of the public during a hearing held by the board or the Office of Administrative Law on a public utility's filing to significantly increase, change, or alter its rate schedule, provided that the questions pertain to the filing being considered at the hearing. Under the bill, the board is to respond to these questions no later than 14 days after the final hearing on a public utility's application to significantly increase, change, or alter its rate schedule.
