New Jersey Assembly Bill A1613

New Jersey 2022-2023 Regular Session

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

Caption

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

Impact

The legislation has significant implications for how public utilities manage infrastructure costs and the financial responsibilities of their customers. Under A1613, if a customer complies with the certification requirements, public utilities are prohibited from charging the customer for the costs associated with necessary upgrades incurred during the construction. However, the bill does allow public utilities to charge customers for a proportional share of any increases in their rate base, which may shift some fiscal burdens back to the utility customers in certain circumstances. This approach seeks to balance the burden of upgrade costs between customers and utilities.

Summary

Assembly Bill A1613, introduced in the New Jersey 220th Legislature, aims to provide clear guidelines regarding costs incurred by public utilities for infrastructure upgrades required after a customer completes a construction project aimed at mitigating damage from natural disasters. The bill mandates that customers of public utilities must provide a certification from a licensed contractor within 90 days of completing such construction projects. This certification serves as proof that the upgrades were performed to prepare for or heal from damage incurred during past or future natural disasters.

Contention

One expected point of contention surrounding A1613 is the balance it strikes between protecting utility customers and ensuring that public utilities can maintain their infrastructure. Advocates for the bill argue that it protects homeowners from unexpected costs imposed by utilities, especially in areas prone to natural disasters. Conversely, opponents may raise concerns about potential abuses of the bill’s provisions, where utilities could argue increased costs and shift financial burdens disproportionately on other consumers if they exceed their recovery limits. Furthermore, there can be apprehensions regarding the bureaucratic implications of certification processes and the responses of the Board of Public Utilities in setting and approving those guidelines.