Bill > A2637

Introduced Session

This bill updates the laws concerning the awarding of a public utility (utility) privilege or franchise (franchise) by political subdivisions of the State and the process of approving the franchise by the Board of Public Utilities (BPU). Under the bill, all new franchises are to be for a term no longer than seven years. The bill provides in statute and enhances existing BPU rules and regulations on the process, terms, and conditions by which the BPU is to review and approve a franchise. The bill requires the BPU to deny approving a franchise granted by a political subdivision if the board finds that the utility is not able to continuously afford safe, adequate, and proper service within the political subdivision at just and reasonable rates. The bill allows a political subdivision of this State to revoke a franchise granted to a utility if the governing body of the political subdivision finds, after public hearing, that the utility has violated the terms and conditions of the franchise and passes a resolution, in a manner provided by law, revoking the franchise. If the political subdivision revokes a franchise, the political subdivision is to make provisions for the continuous and uninterrupted utility service within the political subdivision as determined by the BPU. Another utility operating in the State seeking to provide utility service to that political subdivision is to submit to the BPU a certified copy of the privilege or franchise granted by the political subdivision. If a political subdivision revokes a privilege or franchise and chooses to provide electric, water, or sewer utility service within the political subdivision in a manner provided by law, the political subdivision is to submit to the BPU a certified copy of a statement attesting to that fact. Further, the bill amends existing law to increase the civil penalties paid by a utility, person, or entity subject to the jurisdiction of the BPU for violating any law, rule, regulation, or order of the BPU. Civil penalties are to be increased from $100 a day to $25,000 for each violation, but penalties are not to exceed $2,000,000 for any series of related events. The bill establishes the "Utilities Civil Penalty Fund" in the BPU, into which the civil penalties collected are to be deposited. The monies in the fund are to be credited to utility customers in a manner to be determined by BPU regulation. Each customer is to be awarded a pro-rata share of the funds through a credit on the utility bill of a customer within 60 days after the date the BPU receives penalty monies recovered from a utility. Any monies received by the BPU that are not credited to utility customers shall be used by a public utility to improve utility service quality and reliability in the best interests of utility customers in a manner specified by the BPU. The bill prohibits civil penalties assessed against a utility from being recoverable from its ratepayers.

AI Summary

Committee Categories

Chris DePhillips (R)*,  Erik Peterson (R), 

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 01/13/2026)

Official Document