New Jersey Assembly Bill A1626

New Jersey 2022-2023 Regular Session

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

Caption

Requires electric public utility to reimburse residential customer for cost of food and prescription medicine spoiled or compromised as a result of sustained electric service outage.

Impact

The bill aims to address the financial burden placed on residents during prolonged power outages which can result from natural disasters or other major events. By mandating that utilities compensate residential customers for losses incurred due to outages, the legislation seeks to enhance customer protection and accountability of utility companies. The expected implementation period is set for 90 days following the bill's passage, during which utilities are required to set up a reimbursement application system. This will allow customers to submit their claims online.

Summary

Assembly Bill A1626 requires electric public utilities in New Jersey to reimburse residential customers for the cost of food and prescription medicine that spoil or are compromised due to a sustained electric service outage. Under the bill's provisions, customers can claim up to $500 for spoiled food and up to $1,000 for compromised prescription medicine. To receive reimbursement, customers must provide specific documentation, including itemized lists and proof of loss, such as receipts or photographs.

Contention

While the bill appears to offer valuable protections to consumers, discussions surrounding it may highlight concerns over its potential financial implications for electric utilities. Utility companies may argue that reimbursing customers for losses incurred during power outages could place a significant financial strain on their operations, potentially leading to higher rates for electricity consumers as utilities may seek to recover these costs. Additionally, the precise definition of what constitutes a 'sustained interruption' and how utilities will manage reimbursement processes might become points of contention as the bill moves through legislative scrutiny.