Bill
Bill > S2706
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires the Board of Public Utilities (board) to engage a third party to conduct a feasibility and cost savings study on the de-privatization of public utilities in this State. The third party is authorized to request information and reasonable assistance from any public utility or public entity in order to conduct the study, which is to examine the feasibility of and cost savings associated with de-privatization options, including, but not limited to: (1) acquisition or operation of existing public utilities, in part or in whole, by a public entity; and (2) joint ownership or operation of existing public utilities, in part or in whole, between a public entity and existing public utilities. The study is to include: (1) the short- and long-term challenges and benefits of each option examined, including, but not limited to, any anticipated environmental effect, impact on service, and cost to ratepayers; (2) the strengths and weaknesses of selecting each public entity considered for potential acquisition, ownership, or operation, in whole or in part, of public utilities, as well as potential organizational structures; (3) an estimation of costs, including, but not limited to, financial costs, as well as long-term financial impact on the State and any public entity involved in each option; (4) an estimation of the cost savings associated with each option examined; (5) an estimation of the amount of revenue generated by clean energy programs; and (6) any other analysis as the board directs. Any public utility or public entity is required to promptly respond to, cooperate fully with, and provide any requested information to the third party. Within a year of the bill's effective date, the board is required to submit a report to the Governor and the Legislature summarizing the findings from the study and providing recommendations as to the feasibility of, need for, cost savings associated with, and plan for the de-privatization of public utilities in this State. The report is to include recommendations for legislative, executive, and other actions. The bill appropriates $100,000 from the General Fund to the board to implement the provisions of the bill. With this legislation, the sponsor intends to encourage the State to explore opportunities to provide utility services as a public good for utility customers across New Jersey.
AI Summary
This bill requires the Board of Public Utilities (board) to hire an independent third party, meaning an entity with no financial ties to utilities or government bodies, to study the possibility and potential cost savings of "de-privatizing" public utilities in the state. De-privatization, in this context, refers to options like a public entity, which is any state government department or its subdivisions, acquiring or operating existing utilities, either fully or partially, or a public entity and existing utilities jointly owning or operating them. The study will analyze the short and long-term benefits and drawbacks of these options, including their environmental impact, effect on service quality, and costs for consumers (ratepayers). It will also assess the strengths and weaknesses of different public entities that could be involved, estimate financial costs and long-term impacts on the state and any participating public entities, and project cost savings and revenue from clean energy programs, which are initiatives promoting energy efficiency and renewable sources like solar and wind. Public utilities and public entities must cooperate fully with the third party conducting the study. Within one year of the bill becoming law, the board must submit a report to the Governor and Legislature detailing the study's findings and recommending whether de-privatization is feasible, needed, and how it could be implemented, along with suggestions for legislative or executive actions. The bill also allocates $100,000 from the state's General Fund to the board to cover the costs of this study, with the overall goal of exploring ways to provide utility services as a public good for all New Jersey residents.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/13/2026)
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/2026/S2706 |
| BillText | https://pub.njleg.gov/Bills/2026/S3000/2706_I1.HTM |
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