Bill
Bill > S3313
NJ S3313
NJ S3313Prohibits BPU from authorizing rate increases for electric and gas public utilities that charge inclining block rates for residential customers.
summary
Introduced
02/05/2026
02/05/2026
In Committee
02/05/2026
02/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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Assessment of Energy Affordability in New Jersey and Alternative Policy and Rate Options," inclining block rates are outdated and are not cost-reflective, meaning that the rates do not reflect the actual cost of generating that power.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), the state agency responsible for regulating utility services, from approving any rate increases for electric or gas companies that charge residential customers an "inclining block rate." An inclining block rate is a pricing system where the cost per unit of electricity or gas goes up as a customer uses more of it, with higher rates applied after usage surpasses certain limits. The bill's sponsors intend to eliminate this rate structure, which they believe is outdated and doesn't accurately reflect the actual costs of providing energy, with the goal of lowering electricity bills for residents, particularly during the summer months.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/05/2026)
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/S3313 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3313_I1.HTM |
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