New Jersey Assembly Bill A5950

New Jersey 2024-2025 Regular Session

• Introduced: 7/24/25
• Refer: 7/24/25

Caption

Prohibits electric and gas public utilities from implementing certain customer charges.

Impact

If enacted, A5950 would significantly modify current regulations regarding how public utilities can charge their customers, particularly residential ones. This bill targets fixed customer charges, which have been a point of contention as they can affect low-usage households disproportionately. By prohibiting such charges, the law would aim to ensure that customers only pay for the utilities they consume, ultimately promoting fairness in billing practices. This change could lead to overall reduction in monthly utility bills for consumers, an appealing factor for many constituents amidst rising living costs.

Summary

Assembly Bill A5950 aims to prohibit electric and gas public utilities in New Jersey from maintaining or implementing customer charges for residential customers. The bill defines a 'customer charge' as a fixed fee assessed by public utilities to cover administrative costs associated with managing or maintaining a customer's account, such as meter reading and billing. This legislation seeks to alleviate the financial burden on residential customers by eliminating these fixed charges, which do not vary with usage. A key aspect of the bill is its immediate effect upon enactment, highlighting the urgency and significance attributed to protecting consumers.

Contention

Opposition to the bill may arise from utility companies as they argue that customer charges are necessary to cover fixed operating costs. Critics of the bill from the utility sector could express concerns that eliminating these charges could destabilize their financial framework, impacting their ability to maintain infrastructure and ensure reliable service provision. However, supporters of A5950 argue that the elimination of fixed charges is a vital step towards consumer protection, asserting that all customers deserve a billing structure that is equitable and reflective of their actual usage.