New Jersey Senate Bill S446

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

The bill prohibits public utilities from billing customers for costs incurred due to required infrastructure upgrades resulting from a qualified construction project, provided the customer meets the certification requirements. However, it allows for public utilities to recover their costs through their rate base, while still enabling them to bill customers for any increases in rates relating to the infrastructure upgrades.

Summary

Senate Bill S446 aims to regulate billing practices of public utilities regarding infrastructure upgrades necessitated by construction projects aimed at mitigating damage from natural disasters. The bill specifies that customers who have completed such qualified construction projects must provide certification from licensed contractors to both the Board of Public Utilities and their respective public utility companies within 90 days of completion. This is intended to ensure that the construction work is recognized as beneficial for infrastructure resilience against future disasters.

Contention

Debate surrounding S446 may focus on the balance between providing financial relief to utility customers who invest in mitigating natural disaster impacts and the concern among utility companies regarding their cost recovery processes. Proponents argue that this will encourage customers to invest in disaster-resilient construction without incurring additional financial burdens from utility costs. On the other hand, utility companies might contend that any limitations on billing could impact their financial stability and ability to fund necessary infrastructure improvements.