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NJ A5436

Bill

Status

Introduced

3/10/2025

Primary Sponsor

Alexander Schnall

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Origin

General Assembly

2024-2025 Regular Session

AI Summary

  • Requires the Board of Public Utilities (BPU) to determine and consider the "lowest reasonable return on equity" when evaluating whether proposed rate increases for electric, gas, and water utilities are just and reasonable

  • Mandates the BPU develop or adopt analytic models reflecting state, federal, and industry standards to calculate fair authorized return on equity for public utilities

  • Applies to petitions submitted to the BPU for rate changes under existing rate-setting statutes (R.S.48:2-21, R.S.48:2-21.1, and C.48:2-21.2)

  • Takes effect on the first day of the sixth month following enactment and applies only to rate case petitions filed on or after that effective date

  • Requires the BPU to adopt rules and regulations under the Administrative Procedure Act to implement the new requirements

Legislative Description

Requires BPU to determine and consider lowest reasonable return on equity before approving electric, gas, and water public utility base rate cases.

2nd Reading in the Assembly

Last Action

Assembly Floor Amendment Passed (Quijano)

5/22/2025

Committee Referrals

Appropriations5/5/2025
Telecommunications and Utilities3/10/2025

Full Bill Text

No bill text available