Bill > A5438

This bill establishes new regulations for electric and gas utilities to manage and redistribute excess profits, defined as revenues collected beyond the total revenue requirement approved by the Board of Public Utilities. Under the bill, utilities must conduct an annual review within three months of their reporting period to identify any excess profits, and if found, must redistribute these profits to customers through bill credits, direct payments to customers with unpaid balances, or direct payments to customers enrolled in utility assistance programs. Utilities must complete this redistribution within 45 days of the board's order, and these redistributed funds cannot be recovered from ratepayers. If a utility fails to redistribute excess profits or misrepresents financial information, it may be subject to a fine not exceeding 5% of its total revenue requirement or 105% of the excess profits. Importantly, any penalties collected will be allocated to supplement existing utility assistance programs. The Board of Public Utilities is required to adopt rules and regulations to implement the act, and while the bill takes effect immediately, sections regarding excess profit redistribution will remain inoperative until the board establishes the necessary guidelines.

Budget and Finance, Transportation and Infrastructure

https://www.njleg.state.nj.us/bill-search/2024/A5438