Bill > S4414

Introduced Session

This bill requires the Board of Public Utilities (board) to establish best practices for electric public utilities and to consider a utility's compliance with such standards when reviewing an application for a rate increase. Under the bill, the board is required to identify and establish best practices for electric public utilities based on national, State, and industry standards concerning: (1) electric generation; (2) electric transmission; (3) operations and maintenance, including emergency preparedness and response and vegetation maintenance; (4) consumer education; (5) business management; and (6) affordability and cost containment. The board is required to establish objective benchmarks by which to assess an electric public utility's compliance with the board's best practices. The board is to determine what constitutes an electric public utility's adequate progress towards meeting the benchmarks. While reviewing an electric public utility's request to increase its rates, the board is required to assess the utility's efforts to comply, and actual compliance, with the board's best practices. While conducting its assessment, the board is to consider, at a minimum: (1) the utility's progress towards, or actual satisfaction of, the benchmarks established pursuant to the bill; and (2) how the utility's compliance with the board's best practices compares to that of other utilities in New Jersey. Under the bill, the board is prohibited from approving a request to increase any component of an electric rate for an electric public utility that fails to demonstrate at least adequate progress towards meeting the benchmarks, as assessed by the board at the time of the electric public utility's base rate case filing. In the event the board denies an electric public utility's petition for a rate increase for failing to demonstrate adequate progress towards meeting the benchmarks, the board is required to provide the electric public utility a copy of its best practices benchmark compliance assessment, including remedial action steps for the electric public utility to take to demonstrate adequate progress. The board is required to make periodic revisions to the best practices as necessary to reflect the current national, State, and industry standards and to publish the best practices on its Internet website.

Committee Categories

Tony Bucco (R)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 05/19/2025)

Official Document