A3422

An Act concerning electric public utility rates and supplementing Title 48 of the Revised States.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As used in this section:

“All-items index” means the rate of inflation for all items, as determined by the United States Bureau of Labor Statistics in its Consumer Price Index reports.

“Board” means the Board of Public Utilities.

“Electric public utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State.

“Eligible household” means a low-income or middle-income household as defined pursuant to this subsection that is also a residential household.

“Low-income household” means a household with a total, annual household income that is equal to or less than 200 percent of the federal poverty level, as that level is updated annually by the United States Department of Health and Human Services.

“Middle-income household” means a household with a total, annual household income that is equal to or less than 400 percent of the federal poverty level, as that level is updated annually by the United States Department of Health and Human Services.

“Program” means the rate protections for eligible households established pursuant to subsection b. of this section.

b. An electric public utility shall not increase its rates for eligible households by more than the all-items index for the previous calendar year.

c. An electric public utility that fails to comply with the provisions of subsection b. of this section shall be fined an amount to be determined by the board and shall be subject to other penalties as determined by the board.

d. An electric public utility shall annually report to the board, in a form and manner to be determined by the board, the following information:

(1) the number of eligible households that benefit from the program;

(2) the financial impact of the program on the electric public utility; and

(3) recommendations for adjustments to the program.

e. The board shall annually submit a report to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), summarizing the information submitted to the board by an electric public utility pursuant to subsection d. of this section.

f. The board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, the establishment of:

(1) a report submission process for electric public utilities complying with the provisions of subsection d. of this section;

(2) the amount of the fine to be paid by an electric public utility pursuant to subsection c. of this section; and

(3) penalties to which an electric public utility shall be subject pursuant to subsection c. of this section.

2. This act shall take effect immediately.

STATEMENT

This bill establishes limits for electric public utility rate increases for eligible households. Specifically, under the bill, an electric public utility is prohibited from increasing its rates for low- and middle-income households that are also residential households by more than the all-items index for the previous calendar year. The bill provides that an electric public utility that fails to comply with this prohibition is to be fined an amount and subject to any other penalties to be determined by the board. Finally, the bill requires an electric public utility to report the following information to the board: (1) the number of eligible households that benefit from the program; (2) the financial impact of the program on the electric public utility; and (3) recommendations for adjustments to the program. The board is then required, on an annual basis, to issue a report to the Legislature that summarizes the information it receives from an electric public utility under the bill.

Under the bill, “all-items index” means the rate of inflation for all items, as determined by the United States Bureau of Labor Statistics in its Consumer Price Index reports; “low-income household” means a household with a total, annual household income that is equal to or less than 200 percent of the federal poverty level, as that level is updated annually by the United States Department of Health and Human Services; and “middle-income household” means a household with a total, annual household income that is equal to or less than 400 percent of the federal poverty level, as that level is updated annually by the United States Department of Health and Human Services.