New Jersey Assembly Bill A1435

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires electric public utilities operating or providing service to certain LED street lights to charge customers only for actual costs.

Impact

The bill is expected to streamline the process for determining the costs associated with LED street lighting service across New Jersey. It requires electric public utilities to submit a revised tariff for these services, reflecting only the actual costs of installation and operation, which must be approved by the Board of Public Utilities within 60 days. This change aims to encourage municipalities to transition to LED street lights, reinforcing efforts for energy efficiency and lowering overall municipal lighting expenses.

Summary

Bill A1435, sponsored by Assemblyman James J. Kennedy, mandates that electric public utilities charge only for the actual costs associated with providing service to light-emitting diode (LED) street lights owned by government entities. This legislation recognizes the substantial energy efficiency advantages of LED lights, which utilize 15% of the energy of incandescent bulbs and can significantly reduce street lighting costs for municipalities, potentially cutting expenditures by up to 65% when converted to LED technology.

Contention

While the bill seems to have broad support for promoting energy efficiency, there may be some contention regarding the financial implications for electric utilities and the regulatory oversight by the Board of Public Utilities. Utilities may express concerns about adjusting their rate bases and the potential impacts on their revenue streams. Additionally, stakeholders within the state's infrastructure sectors may engage in discussions about the feasibility and timing of these changes, as well as the challenges related to the transition from traditional lighting systems.