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NJ S454
NJ S454Requires BPU to consider affordability to ratepayers before approving base rate cases for electric public utilities.
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 consider affordability to ratepayers as a factor in determining whether an electric utility rate increase proposed as part of a base rate case is found to be just and reasonable. Under current law, the board may approve a petition by an electric public utility to increase, change, or alter any existing utility rates upon determination that the increase, change, or alteration is just and reasonable. Currently, the primary factors considered by the board in the determination of justness and reasonableness include the public utility's property valuation (i.e., the rate base), the public utility's expenses, and the public utility's rate of return.
AI Summary
This bill mandates that the Board of Public Utilities (BPU), when reviewing requests from electric utility companies to change their rates, must now consider how affordable those changes will be for consumers, referred to as "ratepayers." Previously, the BPU primarily focused on factors like the utility's property value, its operating expenses, and the profit it was allowed to make when deciding if a rate increase was "just and reasonable." This legislation adds affordability to that list of considerations, meaning the BPU cannot approve a rate increase if it's deemed unaffordable for the public, even if other traditional factors are met. This change will apply to any rate increase requests submitted to the BPU after the bill becomes law.
Committee Categories
Business and Industry
Sponsors (2)
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/S454 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/454_I1.HTM |
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