SENATE, No. 3845

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED OCTOBER 28, 2024

 


 

Sponsored by:

Senator  BRIAN P. STACK

District 33 (Hudson)

Senator  ANGELA V. MCKNIGHT

District 31 (Hudson)

 

 

 

 

SYNOPSIS

     Requires BPU to consider affordability to ratepayers before approving base rate cases for electric public utilities.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the approval of certain 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.    In determining just and reasonable rates for any electric utility pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1962, c.198 (C.48:2-21.2), the board shall consider affordability to ratepayers as a factor in determining if an increase, change, or alteration to any existing individual rates, joint rates, tolls, charges or schedules thereof is just and reasonable.

 

     2.    This act shall take effect immediately and shall apply to petitions submitted to the Board of Public Utilities pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1962, c.198 (C.48:2-21.2) on or after the date of enactment.

 

 

STATEMENT

 

     This bill requires the Board of Public Utilities (board) to consider affordability to ratepayers as a factor in determining whether an electric utility rate increase proposed as part of a base rate case is found to be just and reasonable. 

     Under current law, the board may approve a petition by an electric public utility to increase, change, or alter any existing utility rates upon determination that the increase, change, or alteration is just and reasonable.  Currently, the primary factors considered by the board in the determination of justness and reasonableness include the public utility's property valuation (i.e., the rate base), the public utility's expenses, and the public utility's rate of return.