Bill > S4304

This bill requires the New Jersey Board of Public Utilities (BPU) to determine and consider the lowest reasonable return on equity when reviewing rate cases for electric, gas, and water public utilities. The bill defines key terms, including "return on equity" as the profit percentage utilities can collect from ratepayers on their equity investment. Specifically, the BPU must develop or adopt analytic models that reflect state, federal, and industry standards for determining a fair and reasonable authorized return on equity. These models will be used as a factor in evaluating whether proposed rate increases are just and reasonable. The bill applies to all petitions submitted to the BPU for rate changes after its effective date, which will be the first day of the sixth month following enactment. The legislation aims to provide a more structured and standardized approach to setting utility rates, potentially helping to protect consumers from excessive rate increases while still ensuring utilities can maintain their infrastructure and earn a fair return on investment.

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https://www.njleg.state.nj.us/bill-search/2024/S4304