New Jersey Assembly Bill A1616

New Jersey 2022-2023 Regular Session

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

Caption

Requires public utility to reimburse business customer during period when business ceases operations due to utility repairing or replacing its equipment on business customer's property.

Impact

One major implication of Bill A1616 is that it aims to provide financial protection to businesses against the economic consequences of service interruptions caused by public utilities, which can oftentimes lead to significant losses. By making utilities accountable for these losses, the bill could potentially motivate them to improve their service reliability and maintenance protocols. Notably, the bill stipulates that utilities cannot pass the costs of these reimbursements onto ratepayers, which aligns with the intention to hold utilities accountable while protecting consumers from increased rates.

Summary

Bill A1616, introduced in the New Jersey Legislature, mandates that public utilities must reimburse business customers for financial losses that result when a business must cease operations due to a service interruption caused by the utility's need to repair or replace its equipment on the customer's property. The bill is designed specifically to address the financial impact on businesses that rely on consistent utility services for their operations. In such situations, the Board of Public Utilities (BPU) is tasked with determining the reimbursement amount based on the documentation provided by the affected business customer.

Contention

However, the bill does have exceptions. It does not apply to losses incurred due to service interruptions during declared emergencies, such as natural disasters or other incidents classified under the term 'emergency event.' This limitation has sparked some debate regarding the fairness of such exclusions, especially for businesses that may still suffer considerable downtime and losses even during these circumstances. Critics might argue that businesses should still receive some level of support in emergencies, while supporters may contend that this clause is necessary to avoid overwhelming utility companies during critical times.