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Bill > S4573
NJ S4573
NJ S4573Prohibits BPU from authorizing rate increases for electric and gas public utilities that charge inclining block rates for residential customers.
summary
Introduced
06/05/2025
06/05/2025
In Committee
06/05/2025
06/05/2025
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Assessment of Energy Affordability in New Jersey and Alternative Policy and Rate Options," inclining block rates are outdated and are not cost-reflective, meaning that the rates do not reflect the actual cost of generating that power.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 approving rate increases for electric and gas utilities that use inclining block rates for residential customers. An inclining block rate is a pricing structure where utility charges increase as a customer's usage goes beyond certain thresholds, meaning electricity or gas becomes more expensive after a household consumes a specified amount of energy. The legislation defines key terms such as "electric public utility" and "gas public utility" as entities that distribute electricity or gas to end users within New Jersey. The bill requires the BPU to adopt necessary regulations to implement this prohibition and takes effect immediately. The motivation behind this bill appears to be addressing concerns that inclining block rates are outdated and not truly reflective of the actual cost of generating power, with the intent of potentially reducing electricity rates for residential customers, particularly during high-usage periods like summer months. By preventing rate increases under this structure, the bill aims to provide more predictable and potentially lower energy costs for New Jersey residents.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 06/05/2025)
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/S4573 |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4573_I1.HTM |
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