New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A1613

Introduced
1/11/22  

Caption

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

Impact

The legislation has significant implications for how public utilities manage infrastructure costs and the financial responsibilities of their customers. Under A1613, if a customer complies with the certification requirements, public utilities are prohibited from charging the customer for the costs associated with necessary upgrades incurred during the construction. However, the bill does allow public utilities to charge customers for a proportional share of any increases in their rate base, which may shift some fiscal burdens back to the utility customers in certain circumstances. This approach seeks to balance the burden of upgrade costs between customers and utilities.

Summary

Assembly Bill A1613, introduced in the New Jersey 220th Legislature, aims to provide clear guidelines regarding costs incurred by public utilities for infrastructure upgrades required after a customer completes a construction project aimed at mitigating damage from natural disasters. The bill mandates that customers of public utilities must provide a certification from a licensed contractor within 90 days of completing such construction projects. This certification serves as proof that the upgrades were performed to prepare for or heal from damage incurred during past or future natural disasters.

Contention

One expected point of contention surrounding A1613 is the balance it strikes between protecting utility customers and ensuring that public utilities can maintain their infrastructure. Advocates for the bill argue that it protects homeowners from unexpected costs imposed by utilities, especially in areas prone to natural disasters. Conversely, opponents may raise concerns about potential abuses of the bill’s provisions, where utilities could argue increased costs and shift financial burdens disproportionately on other consumers if they exceed their recovery limits. Furthermore, there can be apprehensions regarding the bureaucratic implications of certification processes and the responses of the Board of Public Utilities in setting and approving those guidelines.

Companion Bills

No companion bills found.

Previously Filed As

NJ A659

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

NJ S61

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

NJ A5038

"Utility Rate Recovery Fairness Act"; prohibits electric public utilities and gas public utilities from recovering certain costs.

NJ HF4345

Public utilities prohibited from recovering infrastructure costs incurred to extend service to new natural gas customers from existing natural gas customers.

NJ S4271

"Utility Rate Recovery Fairness Act"; prohibits electric public utilities and gas public utilities from recovering certain costs.

NJ A2916

Prohibits public utility from recovering certain administrative costs.

NJ A2849

Prohibits electric public utilities from billing customers for certain services during service interruptions and requires repair of certain street lights.

NJ A2942

Prohibits electric and gas public utilities from implementing certain customer charges.

NJ A4021

Provides CBT and gross income tax credits for certain energy infrastructure upgrades.

NJ A2932

Prohibits public utilities from recovering cost of legal penalties.

Similar Bills

NJ S61

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

NJ A659

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

UT HB0350

District Energy Amendments

WV SB273

Preventing public water and sewer utilities from prohibiting customer from constructing, installing, or maintaining connection to public utility

SC H5215

Data Center Utility Costs

NJ A3937

Requires electric public utility to charge residential rate for service used by residential customer for electric vehicle charging at charging stations within certain designated parking spaces.

CO HB1175

Smart Meter Opt-In Program

UT SB0227

Electricity Supply Amendments