New Jersey Assembly Bill A758

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

Impact

A significant provision of A758 is its prohibition against public utilities billing customers for costs incurred during necessary upgrades to their infrastructure that result from these qualified construction projects, provided the customer complies with the certification requirement. However, utilities retain the right to collect a customer's pro rata share of any increase in their rate base or other recovery mechanisms approved by the board, which might raise questions about potential cost shifts to other customers in the long term.

Summary

Assembly Bill A758 aims to establish guidelines concerning upgrades to public utility infrastructure following qualified construction projects. The bill stipulates that customers of public utilities must provide certification from a licensed contractor within 90 days of completing construction intended to mitigate damage from past or potential natural disasters. This certification assures both the Board of Public Utilities and the utility company that the upgrades are compliant with the prescribed standards.

Contention

The bill's introduction suggests there may be differing opinions regarding the implications of cost recovery on public utilities. Critics could argue that the provision allowing for cost recovery in utility rate bases might lead to increased rates for other customers who are not directly involved in qualified construction projects. Proponents of the bill, however, argue that it encourages customers to undertake important mitigation work that can reduce broader infrastructure vulnerabilities in disaster-prone areas, thus benefiting public safety and community resilience.