New Jersey Senate Bill S1383

New Jersey 2022-2023 Regular Session

• Introduced: 2/10/22
• Refer: 2/10/22

Caption

Prohibits public utility from increasing rates until conclusion of hearing and BPU determination that rate increase is just and reasonable.

Impact

This legislation prevents public utilities from unilaterally increasing rates, advancing the structure of rate approval that puts consumer interests at the forefront. By requiring a thorough hearing and a conclusive determination by the BPU, the bill is designed to provide a safeguard against potentially arbitrary or excessive increases. This change is anticipated to foster a more transparent regulatory environment and give consumers a clearer path to contest unwarranted rate hikes. It could also prompt utilities to present more rigorous evidence substantiating their need for increased rates during hearings.

Summary

Senate Bill 1383 proposes to amend existing laws governing public utility rate increases in New Jersey. Under the current system, public utilities can increase rates with Board of Public Utilities (BPU) approval even before a hearing concludes. This bill aims to change that, stipulating that no rate increase can occur until the BPU has determined, post-hearing, that the increase is justified and reasonable. The intent behind this legislative change is to enhance consumer protections and ensure that public utilities cannot impose higher rates without adequate scrutiny and justification.

Contention

Notable points of contention surrounding SB 1383 include concerns from utility companies about the potential delays in implementing justified rate increases. Utilities may argue that this could lead to underfunding essential services or investments in infrastructure, particularly in times of economic strain. On the other side, consumer advocacy groups support the bill, asserting that it champions the rights of consumers to challenge unjustified rate hikes and ensures that due process is followed in rate adjustments. The dialogues surrounding the bill indicate varying perspectives on regulatory efficacy versus corporate flexibility in the utilities sector.