New Jersey Senate Bill S1805

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires electric public utility to reimburse customers for up to $500 for spoiled food and full cost of spoiled medicine resulting from lengthy service outage following major event.

Impact

This legislation will significantly impact state laws pertaining to consumer rights and utilities' responsibilities. By requiring electric public utilities to reimburse customers for direct losses, such as food and medication, S1805 reinforces the accountability of these companies in cases of service disruptions. The bill does not allow utilities to pass the costs of these reimbursements onto ratepayers, shifting the financial responsibility solely to the utilities themselves. This stipulation may encourage utilities to improve their infrastructure and service reliability to avoid potential reimbursements.

Summary

Senate Bill S1805 mandates that electric public utilities reimburse residential customers for losses incurred due to prolonged interruptions in electric service. Specifically, following a 'major event' that results in a service outage lasting more than 72 hours, customers can claim reimbursement for spoiled food up to $500 and for compromised medication at full cost. This bill seeks to provide financial relief to residents who are affected by lengthy outages, thereby addressing consumer protection in situations related to power service failures.

Contention

A point of contention surrounding S1805 may arise regarding the definition of what constitutes a 'major event' and the criteria for determining liability. Utilities may express concerns over the financial implications of mandatory reimbursements, especially when service interruptions occur due to unforeseeable circumstances such as natural disasters. Additionally, the bill's stipulations—especially regarding the reimbursement process and verification of claims—could face scrutiny regarding efficiency and practicality, potentially leading to disputes between utilities and affected consumers.