New Jersey Assembly Bill A2324

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Permits municipality to charge public utility fee to cover full cost of traffic control services that municipality deemed necessary due to emergency work performed by public utility.

Impact

If enacted, A2324 will have a direct impact on how municipalities fund their emergency response measures during public utility interruptions. By enabling municipalities to recover costs from public utilities, the bill seeks to ensure that funding for traffic control during emergencies does not disproportionately rely on local property taxpayers. This policy shift is particularly significant given the rising incidence of traffic incidents associated with utility work and an evolving public communication landscape as landline phone services diminish.

Summary

Assembly Bill A2324 addresses the financial burden municipalities face when dealing with traffic control necessary due to emergency work performed by public utilities. The bill allows municipalities to charge public utilities a fee to cover the full costs of traffic control services provided by their police departments during such emergencies. This change aims to alleviate the fiscal pressure on local governments, which often have to manage these costs and subsequently raise property taxes to compensate for them.

Contention

Debate over A2324 may arise regarding the fairness of imposing these fees on public utilities, which could pass costs onto consumers. Furthermore, questions may arise about the effectiveness of the Board of Public Utilities in resolving disputes that might emerge between municipalities and public utilities. Critics may argue that the bill does not address the root causes of traffic issues associated with utility work and could lead to inflated charges for consumers.

Notable_points

A2324 recognizes the term 'emergency work' to mean unplanned public utility operations that necessitate immediate attention for safety or reliability purposes. It also stipulates that costs incurred under this framework must be recoverable in a public utility's base rate case, thereby ensuring a structured approach to cost recovery while establishing accountability for public utilities during emergency operations.