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
This legislative move seeks to protect consumers from incurring additional costs for improvements that primarily benefit the utility's infrastructure. Public utilities may, however, recover certain costs related to these upgrades through their rate base, which involves regulatory oversight by the Board of Public Utilities. This means that while customers avoid direct charges for infrastructure improvements linked to their property, the financial impact may still shift to ratepayers as a whole through modifications in the utilities' pricing structures.
Summary
Assembly Bill A659 aims to reform the billing practices of public utilities in New Jersey regarding costs incurred for infrastructure upgrades. The bill specifically prohibits utilities from charging customers for upgrades that are necessary as a result of qualified construction projects aimed at mitigating damages from past or future natural disasters. Under A659, customers engaging in such construction must submit a certification from a licensed contractor to the Board of Public Utilities and the relevant utility companies within 90 days post-completion.
Contention
There are concerns regarding how this bill will affect the financial mechanisms of public utilities. Advocates for the bill argue that it shields consumers from unwarranted charges, especially amid climate change discussions where natural disasters are becoming more prevalent. Conversely, opponents might raise issues over the sustainability of utility funding sources and potential impacts on service quality due to restrictions on funding infrastructure enhancements through customer billing. The bill's implications for utility revenue models and consumer protection could lead to varied responses among stakeholders in both the utility and consumer advocacy communities.
Carry Over
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.
Carry Over
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.
Same As
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.
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.
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