New Jersey Assembly Bill A2339

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires electric public utility to reimburse customers for cost of certain spoiled products resulting from service outage more than 72 hours after end of storm.

Impact

The bill's implementation is expected to have a significant regulatory effect on electric utilities. It will require them to establish an online system for processing reimbursement claims, which must occur within 90 days of the bill's effective date. This creates an obligation for utilities to ensure prompt handling of claims and adherence to claims verification procedures as set by the Board of Public Utilities. By holding utilities financially responsible for outages resulting in customer losses, the bill may encourage them to improve infrastructure resilience and prioritize operational efficiency to minimize service interruptions.

Summary

Assembly Bill A2339 mandates that electric public utilities reimburse customers for losses incurred due to spoilage of food or prescription medications resulting from prolonged power outages. Specifically, it targets scenarios where the utility service is interrupted for more than 72 hours, categorized as a 'sustained interruption' caused by a defined 'major event' such as storms or other natural disasters. This legislation aims to mitigate the financial impact on households and businesses following extensive outages, reflecting a shift toward greater accountability from electric utilities in protecting consumer interests.

Contention

While the bill aims to safeguard consumers, potential points of contention may arise regarding the definition of what constitutes a 'major event' and the processes involved in filing claims. Utilities may express concerns regarding the financial implications of reimbursing customers, fearing that it could lead to increased operational costs or necessitate rate adjustments. Additionally, there may be discussions on the sufficiency of the proposed system for claims processing and the burden it may place on both customers seeking restitution and utilities managing the claims.