Bill > S4479

Introduced Session

Certain electric and gas public utilities offer equal payment plans that average a customer's estimated energy usage over 12 months to provide consistent billing. Customers may face lump-sum payments if actual usage exceeds the estimate. This bill requires the Board of Public Utilities (board) to require each electric public utility and gas public utility to offer an equal payment plan for residential customers. This bill prohibits electric and gas public utilities from: (1) charging lump-sum payments under equal payment plans; (2) recovering any outstanding balance due based on the difference between a residential customer's actual yearly usage and any forecasted yearly utility usage; and (3) increasing a residential customer's monthly bill under an equal payment plan except annually, based only on that customer's utility usage data. Further, separate from equal payment plans, at certain times electric and gas public utilities may charge customers using estimated meter bills, which are based on prior usage information or predictive modeling instead of the customers' actual usage. When a customer's estimated meter bill is lower than a later-obtained meter reading, the electric and gas public utility may bill the customer for the difference in a utility billing procedure known as underbilling. This bill also prohibits electric and gas public utilities from underbilling and further prohibits electric public utilities and gas public utilities from incorporating any outstanding balance due based on the difference between a customer's estimated meter bill and a later-obtained actual meter reading into that customer's future utility bills. It is the sponsor's intent that this bill provides a crucial step in addressing economic hardships and promoting fair electric public utility and gas public utility pricing. New Jersey families, individuals, and businesses deserve reliable, affordable energy without facing undue financial strain. The board approved an increase in electricity rates, which will become effective in June 2025. According to the board, this increase will raise electricity bills by approximately 17 to 20 percent. Electricity and gas are not luxuries; they are essential services powering homes, schools, medical devices, and transportation. As the cost of living continues to rise and many wages stagnate, New Jersey residents need protection from utility rate increases, which exacerbate the effects of inflation on consumers. It is the sponsor's intent that this bill will safeguard ratepayers by implementing regulatory measures that promote fairness and transparency in pricing.

Committee Categories

Britnee Timberlake (D)*,  Benjie Wimberly (D)*,  Renee Burgess (D),  Joe Cryan (D), 

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

Official Document