Bill > A3072

Introduced Session

This bill directs an electric public utility (utility), in consultation with the Board of Public Utilities (BPU) and the Division of Rate Counsel, to establish an energy resilience loan program (loan program) for the purpose of providing interest-free financing, to be deployed through a financing program, to make standby emergency power generators (generator) affordable for residential customers of the utility. The loan program will be entirely administered by the utility and residential customers are to purchase the generators from the private sector. The loan program is to include direct loans to residential customers, on terms approved by the BPU, which are to include, but not be limited to: 1) the establishment by the utility of a nonlapsing revolving loan fund to service the loan program; 2) interest-free loans for an amount not to exceed $8,000 per generator per residential utility customer; and 3) an interest-free repayment period as determined by the board. The bill provides that utility is to impose an energy resilience fee (fee) on any residential customer participating in the loan program, which revenues from the fee are to be pledged to secure and be applied to the repayment of the financing costs as described in the bill. The fee may be a usage-based surcharge, a flat user fee, or a charge, based upon a residential customer's electric usage, as determined by the BPU, for each residential customer. The fee is to be itemized and separately identified on the periodic bill of any residential customer subject to the fee. Nothing in the bill is to effect the right to impose, collect, and adjust from time to time the fee imposed on a residential customer. The obligation of any utility residential customer subject to the fee to pay the fee and the obligation of the utility to collect the fee is not to be subject to any setoff, counterclaim, surcharge, or defense by the utility or by any utility residential customer, or in connection with a bankruptcy of any utility or any residential customer The bill provides that the BPU is to ensure that all reasonable costs incurred by a utility to start and implement the loan program may be recovered as part of the utility's revenue requirement, including necessary billing system adjustments, costs arising out of the billing and collection of, and any costs for fees that are not recovered via a participating residential customer's fee payments, or otherwise. The fee is not to be considered revenue of a utility and accordingly, is not to be subject to any tax, fee, charge, or assessment authorized pursuant to State law. The bill provides that the loan program or the act of serving as an agent to bill and to collect the fee is not to cause any utility to be subject to the laws that regulate financial institutions, escrow depositories, or collection agencies. A utility is not to be responsible for lending, underwriting, and credit determinations.

Committee Categories

Don Guardian (R)*,  Chris DePhillips (R), 

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 01/09/2024)

Official Document