Bill
Bill > A5652
NJ A5652
NJ A5652Prohibits BPU from authorizing rate increases for electric and gas public utilities that charge inclining block rates for residential customers.
summary
Introduced
05/08/2025
05/08/2025
In Committee
05/08/2025
05/08/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits the Board of Public Utilities (board) from authorizing any rate increase by an electric public utility or a gas public utility where the utility assesses a charge that includes an inclining block rate for residential customers. Utilities have historically utilized inclining block rates to encourage energy conservation by charging higher rates once a customer's usage exceeds a certain threshold. However, according to the December 9, 2024 report prepared for the board titled, "An Assessment of Energy Affordability in New Jersey and Alternative Policy and Rate Options," inclining block rates are outdated and are not cost-reflective, meaning that the rates do not reflect the actual cost of generating that power. It is the sponsor's intent to eliminate this rate structure, which is expected to reduce electricity rates for residential customers during the summer months.
AI Summary
This bill prohibits the Board of Public Utilities (BPU) from authorizing rate increases for electric and gas public utilities that use inclining block rates for residential customers. An inclining block rate is a pricing structure where electricity or gas costs increase as a customer's usage goes above certain thresholds. The bill defines key terms, including "electric public utility" and "gas public utility" as utilities that distribute electricity or gas to end users within New Jersey. Under this legislation, the BPU cannot approve any rate increases for utilities that charge residential customers using this tiered pricing method. The bill stems from a December 2024 report suggesting that inclining block rates are outdated and do not accurately reflect the actual cost of power generation. The goal is to potentially reduce electricity rates for residential customers, particularly during summer months, by eliminating this rate structure. The BPU is required to adopt necessary rules and regulations to implement these provisions, and the act would take effect immediately upon enactment.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 05/08/2025)
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/A5652 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5652_I1.HTM |
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