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NJ S3845
NJ S3845Requires BPU to consider affordability to ratepayers before approving base rate cases for electric public utilities.
summary
Introduced
10/28/2024
10/28/2024
In Committee
10/28/2024
10/28/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
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.
AI Summary
This bill requires the New Jersey Board of Public Utilities (BPU) to explicitly consider the affordability of utility rates for consumers when reviewing and approving rate increases for electric utilities. Currently, the BPU evaluates rate increases primarily based on factors like the utility company's property value, expenses, and potential return on investment. The new legislation would mandate that the BPU add ratepayer affordability as a key factor when determining whether a proposed rate increase is "just and reasonable" during a base rate case. This change aims to provide additional protection for consumers by ensuring that potential financial burden on utility customers is a significant consideration in utility rate decisions. The bill will apply to all petitions submitted to the BPU for rate changes after its enactment, and it takes effect immediately upon becoming law.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 10/28/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S3845 |
| BillText | https://pub.njleg.gov/Bills/2024/S4000/3845_I2.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S4000/3845_I1.HTM |
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