A4717

An Act concerning certain utility billing practices and supplementing Title 48 of the Revised Statutes.

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

1. a. As used in this section:

“Board” means the New Jersey Board of Public Utilities or any successor agency.

“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.

“Equal payment plan” means a utility billing procedure implemented by an electric public utility or gas public utility that forecasts a customer’s yearly utility usage, charges the customer in equal monthly installments, and periodically reviews the customer’s actual utility usage.

“Estimated meter bill” means a residential customer utility bill that is based on prior usage information or predictive modeling instead of the customer’s actual usage. “Estimated meter bill” shall not include an electric public utility or gas public utility bill under an equal payment plan.

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

“Lump-sum payment” means a payment charged by an electric public utility or gas public utility to a customer under an equal payment plan when the customer’s actual yearly usage exceeds the forecasted yearly utility usage.

“Underbilling” means a utility billing procedure implemented by an electric public utility or gas public utility where a customer is charged based on the difference between the customer’s estimated meter bill and a later-obtained actual meter reading.

b. Notwithstanding any law, rule, regulation, or order to the contrary, the board shall require each electric public utility and gas public utility to offer an equal payment plan for residential customers. The equal payment plans offered by each electric public utility and gas public utility shall not charge lump-sum payments to residential customers and shall not allow the electric public utility or gas public utility to recover any outstanding balance due based on the difference between a customer’s actual yearly usage and any forecasted yearly utility usage. Any increase to a residential customer’s monthly bill under an equal payment plan offered by an electric public utility or gas public utility shall be made annually based only on that residential customer’s utility usage data. The board shall not approve an electric public utility or gas public utility’s request to recover the cost of offering an equal payment plan through rates charged to ratepayers after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Notwithstanding any law, rule, regulation, or order to the contrary, the board shall prohibit each electric public utility and gas public utility from underbilling residential customers. The board shall further prohibit each electric public utility and gas public utility from incorporating any outstanding balance due based on the difference between a customer’s estimated meter bill and a later-obtained actual meter reading into that customer’s future utility bills.

d. 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 to implement the provisions of this section.

2. This act shall take effect immediately.

STATEMENT

Certain electric and gas public utilities offer equal payment plans that average a customer’s estimated energy usage over 12 months to provide consistent billing. Customers may face lump-sum payments if actual usage exceeds the estimate. This bill requires the Board of Public Utilities (board) to require each electric public utility and gas public utility to offer an equal payment plan for residential customers. This bill prohibits electric and gas public utilities from: (1) charging lump-sum payments under equal payment plans; (2) recovering any outstanding balance due based on the difference between a residential customer’s actual yearly usage and any forecasted yearly utility usage; and (3) increasing a residential customer’s monthly bill under an equal payment plan except annually, based only on that customer’s utility usage data.

Further, separate from equal payment plans, at certain times electric and gas public utilities may charge customers using estimated meter bills, which are based on prior usage information or predictive modeling instead of the customers’ actual usage. When a customer’s estimated meter bill is lower than a later-obtained meter reading, the electric and gas public utility may bill the customer for the difference in a utility billing procedure known as underbilling. This bill also prohibits electric and gas public utilities from underbilling and further prohibits electric public utilities and gas public utilities from incorporating any outstanding balance due based on the difference between a customer’s estimated meter bill and a later-obtained actual meter reading into that customer’s future utility bills.

It is the sponsor’s intent that this bill provides a crucial step in addressing economic hardships and promoting fair electric public utility and gas public utility pricing. New Jersey families, individuals, and businesses deserve reliable, affordable energy without facing undue financial strain.

The board approved an increase in electricity rates, which were effective in June 2025. According to the board, this increase will raise electricity bills by approximately 17 to 20 percent. Electricity and gas are not luxuries; they are essential services powering homes, schools, medical devices, and transportation. As the cost of living continues to rise and many wages stagnate, New Jersey residents need protection from utility rate increases, which exacerbate the effects of inflation on consumers. It is the sponsor’s intent that this bill will safeguard ratepayers by implementing regulatory measures that promote fairness and transparency in pricing.