Requires electric and gas public utilities de-privatization study; appropriates $100,000.

A2235

ASSEMBLY, No. 2235

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Requires electric and gas public utilities
de-privatization study; appropriates $100,000.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
requiring a study on the de-privatization of certain
public utilities and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� As used in this
section:�

���� �Division� means the New
Jersey Division of the Rate Counsel or a successor agency.�

���� �Clean energy program� means a
program administered by a public entity, which program incentivizes or
otherwise promotes increased energy efficiency and the use of clean, renewable
sources of energy, which sources shall include, but shall not be limited to, solar,
wind, geothermal, and sustainable biomass.�

���� �Electric public utility�
means a public utility, as that term is defined in R.S.48:2-13, that transmits
and distributes electricity to end users within the State.�

���� �Gas public utility� means a
public utility, as that term is defined in R.S.48:2-13, that distributes gas to
end users within the State.�

���� �Public entity� means any of
the principal departments in the Executive Branch of the State government, and
any division, board, bureau, office, commission, or other instrumentality
within or created by such department or by any political subdivision.�

���� �Third party� means an entity that
has no past or present ownership interest, financial stake, contractual
obligation, spousal affiliation, lobbying activities, employment or contractor
status, or formal connection with an electric public utility, a gas public
utility, or a public entity, ensuring complete independence from direct or
indirect influence by an electric public utility, a gas public utility, or a
public entity in the third party�s decision-making or operations.� ����� b.�������� The
Division of the Rate Counsel shall engage a third party to conduct a study on
the feasibility of and cost savings associated with the de-privatization of
electric public utilities and gas public utilities in this State and shall
direct the third party to conduct such analysis as the division shall deem
appropriate for purposes of the study.� The third party engaged by the division
shall have the authority to request information and reasonable assistance from
any electric public utility, gas public utility, or public entity in order to
conduct the study.� The study conducted pursuant to this section shall examine
the feasibility of and cost savings associated with de-privatization options,
including, but not limited to:�

���� (1) acquisition or operation
of existing electric public utilities and gas public utilities, in part or in
whole, by a public entity; and

���� (2) joint ownership or
operation of existing electric public utilities and gas public utilities, in
part or in whole, between a public entity and existing electric public
utilities and gas public utilities.�

���� c.���� The study conducted
pursuant to this section shall include, but not be limited to:�

���� (1)�� the short- and long-term
challenges and benefits of each option examined, including, but not limited to,
any anticipated environmental effect, impact on service, and cost to
ratepayers;

���� (2)�� the strengths and
weaknesses of selecting each public entity considered for potential
acquisition, ownership, or operation, in whole or in part, of electric public
utilities and gas public utilities, as well as potential organizational
structures.� Public entities to be considered shall include the division and
any other appropriate public entity;

���� (3)�� an estimation of costs,
including, but not limited to, financial costs, as well as the long-term
financial impact on the State and any public entity involved in each option;

���� (4)�� an estimation of the
cost savings associated with each option examined;

���� (5)�� an estimation of the
amount of revenue generated by clean energy programs; and

���� (6)�� any other analysis as
the division shall direct the third party to conduct.�

���� d.��� Any electric public
utility, gas public utility, or public entity shall promptly respond to,
cooperate fully with, and provide any requested information to the third party
engaged by the division pursuant to subsection b. of this section.�

���� e.���� Within one year after
the effective date of this act, the division shall submit a written report to
the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to
the Legislature summarizing the findings from the study and providing recommendations
as to the feasibility of, need for, cost savings associated with, and plan for
the de-privatization of electric public utilities and gas public utilities in
the State.� The report shall include recommendations for legislative,
executive, and other actions.�

���� 2.��� There is appropriated
from the General Fund to the Division of the Rate Counsel a sum of $100,000 for
the purpose of effectuating this act.�

���� 3.��� This act shall take
effect immediately and shall expire upon submission of the report pursuant to
subsection e. of section 1 of this act.�

STATEMENT

���� This bill requires the
Division of the Rate Counsel (division) to engage a third party to conduct a feasibility
and cost savings study on the de-privatization of electric public utilities and
gas public utilities in the State.� The third party is authorized to request
information and reasonable assistance from any electric public utility, gas
public utility, or public entity in order to conduct the study, which is to
examine the feasibility of and cost savings associated with de-privatization
options, including, but not limited to:� (1) acquisition or operation of
existing electric public utilities and gas public utilities, in part or in
whole, by a public entity; and (2) joint ownership or operation of existing
electric public utilities and gas public utilities, in part or in whole,
between a public entity and existing electric public utilities and gas public
utilities.�

���� The study is to include:� (1)
the short- and long-term challenges and benefits of each option examined,
including, but not limited to, any anticipated environmental effect, impact on
service, and cost to ratepayers; (2) the strengths and weaknesses of selecting
each public entity considered for potential acquisition, ownership, or
operation, in whole or in part, of electric public utilities and gas public
utilities, as well as potential organizational structures; (3) an estimation of
costs, including, but not limited to, financial costs, as well as the long-term
financial impact on the State and any public entity involved in each option;
(4) an estimation of the cost savings associated with each option examined; (5)
an estimation of the amount of revenue generated by clean energy programs; and
(6) any other analysis as the division directs.�

���� Any electric public utility,
gas public utility, or public entity is required to promptly respond to,
cooperate fully with, and provide any requested information to the third
party.�

���� Within a year of the bill�s
effective date, the division is required to submit a report to the Governor and
the Legislature summarizing the findings from the study and providing
recommendations as to the feasibility of, need for, cost savings associated
with, and plan for the de-privatization of electric public utilities and gas public
utilities in this State.� The report is to include recommendations for
legislative, executive, and other actions.�

���� The bill appropriates $100,000
from the General Fund to the division to implement the provisions of the bill.�

���� The board approved an increase
in electricity rates, which will become effective in June 2025.� According to
the board, this increase will raise electricity bills by approximately 17 to 20
percent, depending on a ratepayer�s electric public utility.� Electricity and
gas are not luxuries; they are essential services powering homes, schools,
medical devices, and transportation.� As the cost of living continues to rise
and many wages stagnate, New Jersey residents need protection from utility rate
increases, which exacerbate the effects of inflation on consumers.� With this
bill, the sponsor intends to encourage the State to explore opportunities to
provide electric public utility and gas public utility services as a public
good for electric public utility and gas public utility customers across New
Jersey.� This measure is a crucial step in addressing economic hardships and
promoting fair electric public utility and gas public utility pricing.� New
Jersey families, individuals, and businesses deserve reliable, affordable
energy without facing undue financial strain.�