New Jersey Assembly Bill A2103

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Chaptered: 1/9/24
• Passed: 1/9/24

Caption

Establishes "Resiliency and Environmental System Investment Charge Program."

Impact

A2103 will significantly affect state laws concerning utility regulations by creating a structured process for cost recovery related to essential infrastructure projects. Utilities will be able to recover investments through a surcharge on customer bills, up to a defined cap not exceeding five percent of the utility's total annual revenue. The legislation enforces a system for periodic reviews of these costs and requires utilities to itemize charges on customer bills, which fosters transparency and allows for better customer understanding of their utility charges.

Summary

Assembly Bill A2103 establishes the 'Resiliency and Environmental System Investment Charge Program' (RESIC) in New Jersey. This program is designed to enable water and wastewater utilities to recover costs for investments in infrastructure that are non-revenue producing but enhance system resiliency and compliance with environmental standards. The bill permits utilities to charge customers a specific rate, known as the RESIC rate, aimed at funding projects that improve public health, environmental safety, and the overall functionality of utility systems.

Contention

While the bill proposes a framework to support critical infrastructure enhancements, there may be disagreement among stakeholders regarding the implications of the RESIC rates on customer bills. Concerns may arise about potential increases in utility costs for consumers, particularly if projects funded under the RESIC are perceived as not directly benefiting the average customer. Additionally, the balance of regulatory oversight versus the need for utility flexibility in financing infrastructure may lead to discussions on how best to align state regulations with customer interests.