Bill Text: NJ A896 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires BPU to consider certain revenue-raising limitations when determining whether to approve increases in public utility rates, fares or charges that may be assessed to municipalities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A896 Detail]
Download: New_Jersey-2010-A896-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman RONALD S. DANCER
District 30 (Burlington, Mercer, Monmouth and Ocean)
Assemblywoman MARY PAT ANGELINI
District 11 (Monmouth)
SYNOPSIS
Requires BPU to consider certain revenue-raising limitations when determining whether to approve increases in public utility rates, fares or charges that may be assessed to municipalities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning public utility rate-making and amending R.S.48:2-21.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.48:2-21 is amended to read as follows:
48:2-21. [Schedule of rates.] (a) The board may require every public utility to file with it complete schedules of every classification employed and of every individual or joint rate, toll, fare or charge made, charged or exacted by it for any product supplied or service rendered within this State, as specified in the requirement.
[Fix rates.] (b) The board may after hearing, upon notice, by order in writing:
1. Fix just and reasonable individual rates, joint rates, tolls, charges or schedules thereof, as well as commutation, mileage and other special rates which shall be imposed, observed and followed thereafter by any public utility, whenever the board shall determine any existing rate, toll, charge or schedule thereof, commutation, mileage or other special rate to be unjust, unreasonable, insufficient or unjustly discriminatory or preferential. In every such proceeding the board shall complete and close the hearing within 6 months and enter its final order within 8 months after the filing of the order of the board initiating such proceeding, when such proceeding is on the board's own motion; or after issue is joined through the filing of an answer to a complaint, when such proceeding is initiated by complaint.
2. Fix just and reasonable joint rates, which shall be charged, enforced, collected and observed by railroads and street railroads in the carrying of freight. Whenever the railroads or street railroads involved fail to agree upon the apportionment or division of a joint rate so established, the board may issue a supplemental order declaring the apportionment or division of the joint rate.
[Demurrage rates.] (c) The board may fix the rates or charges to be made by any corporation subject to the provisions of this chapter for the detention of a railroad car containing property transported by railroad to any point in this State or for the use of railroad tracks occupied by such car, commonly called demurrage or car service, or for both such detention and use. Such rates and charges shall conform as nearly as possible to the rates and charges for demurrage or car service prescribed and fixed by the Interstate Commerce Commission for similar service.
[Increase in rates; hearings.] (d) When any public utility
shall
increase any existing individual rates, joint rates, tolls, charges or
schedules thereof, as well as commutation, mileage and other special rates, or
change or alter any existing classification, the board, either upon written
complaint or upon its own initiative, shall have power after hearing, upon
notice, by order in writing to determine whether the increase, change or
alteration is just and reasonable. The burden of proof to show that the
increase, change or alteration is just and reasonable shall be upon the public
utility making the same. The board, pending such hearing and determination,
may order the suspension of the increase, change or alteration until the board
shall have approved the same, not exceeding 4 months. If the hearing and determination
shall not have been concluded within such 4 months the board may during such
hearing and determination order a further suspension for an additional period
not exceeding, 4 months. The board shall approve the increase, change or
alteration upon being satisfied that the same is just and reasonable. In
arriving at any determination pursuant to this subsection concerning the
justness or reasonableness of any increase in a public utility rate, fare or
charge, when such increase in rate, fare or charge is to be assessed to one or
more municipalities in this State, the board shall consider any limitations
that are imposed pursuant to section 10 of P.L.2007, c.62 (C.40A:4-45.45) on
the ability of a municipality or municipalities to raise sufficient revenues to
pay such increase in the public utility rate, fare or charge, in addition to
any other factors that the board deems necessary to arrive at its determination
pursuant to this subsection. If the board determines such an increase is just
and reasonable, it shall, within a written order approving the increase, make a
finding of the facts on the basis of which it approved the increase including a
review of the limitations imposed by section 10 of P.L.2007, c.62
(C.40A:4-45.45).
(cf: P.L.1962, c.198, s.13)
2. This act shall take effect immediately.
STATEMENT
This bill amends R.S.48:2-21 to require the Board of Public Utilities to consider any limitations imposed on a municipality's revenue-raising ability pursuant to section 10 of P.L.2007, c.62 (C.40A:4-45.45), in arriving at any determination as to the justness and reasonableness of an increase in public utility rates, fares or charges that may be assessed to one or more municipalities in this State.
Under the provisions of section 10 of P.L.2007, c.62, in the preparation of its budget, a municipality is prohibited from raising an amount by taxation that exceeds the sum of the municipality's new ratables, the adjusted tax levy applicable to such municipality, and the total of waivers approved pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), subject to certain exceptions to the adjusted tax levy.
