New Jersey Senate Bill S505

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires electric public utility to reimburse residential customer for cost of food and prescription medicine spoiled or compromised as a result of sustained electric service outage.

Impact

The legislation aims to protect consumers by mitigating the financial impact of unforeseen power outages on their essential goods. By stipulating specific reimbursement amounts and outlining the proof required for claims, the bill ensures that customers can effectively seek compensation for their losses. Electric public utilities are required to establish an online application system for reimbursements, streamlining the process for residents in an age where digital access is prevalent. This measure is expected to enhance customer service and responsiveness within utility companies.

Summary

Senate Bill 505, sponsored by Senators James W. Holzapfel and Anthony M. Bucco, mandates that electric public utilities reimburse residential customers for losses related to food and prescription medicines due to power outages. Specifically, customers are entitled to receive up to $500 for spoiled food and up to $1,000 for compromised prescription medicines. This reimbursement is applicable when the power outage is identified as a 'sustained interruption,' defined as lasting more than 48 consecutive hours following a major event that disrupts service.

Contention

While the bill is designed to support consumers, there may be concerns regarding the implications of reimbursing customers for losses incurred during outages. Utilities could face financial burdens, particularly in cases of widespread outages due to severe weather or other unexpected events. Utilities may argue that the costs associated with this bill could ultimately lead to increased rates for consumers, thereby placing an additional financial strain on all electric utility customers. There is potential for contention over how 'major events' are defined and what criteria will be established by the Board of Public Utilities to regulate these reimbursements.