Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Requires customer consent to material changes to third-party energy supply contracts under certain circumstances.
CURRENT VERSION OF TEXT
As reported by the Senate Economic Growth Committee on June 8, 2026, with amendments.
An Act concerning third-party energy supply contracts 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:
“Material change” means a change to the terms or duration of a third-party energy supply contract, including, but not limited to, a change in price or a change to or from fixed or variable pricing.
1“Supplier” means an electric power supplier or gas supplier, as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51).1
“Third-party energy supply contract” means a contract for electric generation service or gas supply service in the State, as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51), entered into by 1[an electric power supplier or a gas supplier, as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51),] a supplier1 and a residential customer of that supplier.
b. Any material change to a third-party energy supply contract 1[that was]1 entered into or renewed after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall require the express verbal, electronic, or written consent of the residential customer, which express consent shall be maintained by the 1[electric power supplier or gas]1 supplier in a verifiable format.
c. 1Notwithstanding the provisions of subsection b. of this section, a supplier may renew or extend a third-party energy supply contract without obtaining the express consent of the residential customer if the renewal or extension:
(1) does not convert a fixed-price product to a variable-price product;
(2) does not convert a third-party energy supply contract with a defined term length to a month-to-month or automatically renewing variable-rate contract;
(3) does not increase the contract price by more than 20 percent above the price in effect during the final billing cycle of the existing third-party energy supply contract; and
(4) permits the residential customer to cancel the renewed or extended third-party energy supply contract and select another product, another supplier, or basic generation service within 60 days following the effective date of the renewal or extension without any cancellation fee, early termination fee, administrative charge, or other financial penalty.
d. Prior to renewing or extending a third-party energy supply contract pursuant to subsection c. of this section, a supplier shall provide two written notices to the residential customer, by mail or electronic notification, in accordance with the preferred method of contact for the residential customer. The first notice shall be provided no earlier than 60 days before the effective date of the renewal or extension. The second notice shall be provided no more than 60 days but no less than 30 days before the effective date of the renewal or extension. Each notice provided pursuant to this subsection shall clearly disclose:
(1) the current price;
(2) the proposed renewal or extension price;
(3) the percentage difference between the two prices;
(4) the residential customer's right to select another product offered by the supplier, enroll with another supplier, or return to basic generation service; and
(5) the procedure for declining the renewal or extension.
e.1 The Board of Public Utilities shall, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this section.
2. This act shall take effect immediately and shall only apply to third-party energy supply contracts entered into or renewed after the effective date of this act.