New Jersey Assembly Bill A4207

New Jersey 2024-2025 Regular Session

• Introduced: 5/2/24
• Refer: 5/2/24

Caption

Requires public utility to charge nonprofit organization residential rate.

Impact

If enacted, A4207 will alter existing state laws regarding utility rates specifically for nonprofit organizations as defined under federal tax guidelines. The implications are significant; by establishing a residential rate for nonprofits, the bill is expected to improve affordability for these organizations, thereby enhancing their capacity to deliver services. Furthermore, it could encourage the growth of nonprofits within the state, promoting a more vibrant civil society.

Summary

Assembly Bill A4207, introduced in May 2024, mandates that public utilities charge nonprofit organizations a residential rate for the electricity or water services provided at their primary operational locations. This provision applies only if the residential rate is lower than the commercial rate, offering financial relief to non-profits that often operate under tight budgets. The bill aims to alleviate the financial burden faced by nonprofits, which play critical roles in social services and community programs.

Contention

Debates surrounding Bill A4207 may highlight concerns related to the practicality of its implementation, including how public utilities would designate and verify qualifying organizations as nonprofits. Additionally, there could be discussions on the potential financial impacts on utility companies, particularly regarding revenue adjustments resulting from widespread application of the residential rate. Opponents might argue that such a measure could result in higher costs for other customers or could complicate the billing process.