New Jersey Assembly Bill A1769

New Jersey 2022-2023 Regular Session

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

Caption

Establishes uniform rates for water and sewer services for residential use based exclusively on metered consumption.

Impact

The enactment of A1769 will significantly alter the mechanisms through which local authorities calculate charges for water and sewer services. By instituting a requirement for consumption-based billing, local authorities will no longer be permitted to charge based on arbitrary factors, but must instead rely on the actual metered usage. This change not only provides clearer billing for residents but also promotes conservation, as consumers are more likely to monitor and reduce their consumption when charges reflect their actual usage.

Summary

Assembly Bill A1769 introduces a legislative framework requiring local public authorities that provide water and sewer services to establish uniform rates exclusively based on metered consumption. Currently, these authorities have the flexibility to set rates based on various criteria such as water outlet types, plumbing fixture capacities, and residential occupancy, which often leads to discrepancies and inconsistencies in billing. By reverting to a model strictly tied to actual consumption, the bill aims to bring fairness and predictability to water and sewer billing practices for residents.

Contention

While supporters herald this bill as a means to create equitable treatment of residents and enhance transparency, there are concerns from certain local agencies regarding the implications for rate structures. The allowance for tiered pricing systems, where different rates can be applied based on total consumption, raises concerns about potential inequities in charging methodologies across different community demographics. Some stakeholders fear that certain residents could see a disproportionate increase in their rates if their consumption spikes due to seasonal usage or other factors, potentially leading to higher financial strain during peak usage periods.