New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A758

Introduced
1/9/24  

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

A significant provision of A758 is its prohibition against public utilities billing customers for costs incurred during necessary upgrades to their infrastructure that result from these qualified construction projects, provided the customer complies with the certification requirement. However, utilities retain the right to collect a customer's pro rata share of any increase in their rate base or other recovery mechanisms approved by the board, which might raise questions about potential cost shifts to other customers in the long term.

Summary

Assembly Bill A758 aims to establish guidelines concerning upgrades to public utility infrastructure following qualified construction projects. The bill stipulates that customers of public utilities must provide certification from a licensed contractor within 90 days of completing construction intended to mitigate damage from past or potential natural disasters. This certification assures both the Board of Public Utilities and the utility company that the upgrades are compliant with the prescribed standards.

Contention

The bill's introduction suggests there may be differing opinions regarding the implications of cost recovery on public utilities. Critics could argue that the provision allowing for cost recovery in utility rate bases might lead to increased rates for other customers who are not directly involved in qualified construction projects. Proponents of the bill, however, argue that it encourages customers to undertake important mitigation work that can reduce broader infrastructure vulnerabilities in disaster-prone areas, thus benefiting public safety and community resilience.

Companion Bills

NJ S446

Same As 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 A1613

Carry Over 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.

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 HF4345

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

NJ A5038

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

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 HB4891

To require all utility companies to absorb the costs of maintenance, upgrades, and repairs for their pipes, cables, utility poles, electrical lines, and other necessities without increasing rates or costs to consumers/customers.

NJ HB3310

To require all utility companies to absorb the costs of maintenance, upgrades, and repairs for their pipes, cables, utility poles, electrical lines, and other necessities without increasing rates or costs to consumers/customers.

NJ S2711

Requires BPU to prohibit electric and gas public utilities from charging residential customers certain types of payments based on certain billing practices.

NJ HB2744

Electric utilities; energy efficiency upgrades, report.

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