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A4988
ASSEMBLY, No. 4988
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 11, 2026
Sponsored by:
Assemblyman� ANDREW MACURDY
District 21 (Middlesex, Morris, Somerset and Union)
SYNOPSIS
���� �Efficient Energy Use Act�; requires certain public
utilities to offer time-varying rates.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning time-varying rates and supplementing Title
48 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� This act shall be known
and may be cited as the �Efficient Energy Use Act.�
���� 2.��� As used in
P.L. , c.
(C. ) (pending before the
Legislature as this bill):�
���� �Board� means the New Jersey
Board of Public Utilities or a successor entity.
���� �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.
���� �Eligible residential
customer� means a residential customer of an electric public utility whose
electricity usage is measured using a smart meter.
���� �Enrolled residential
customer� means an eligible residential customer who has opted-in to be charged
a time-varying rate established pursuant to section 3 of P.L. ,
c. (C. ) (pending
before the Legislature as this bill).�
���� �Smart meter� means the same
as that term is defined in section 1 of P.L.2025, c.47 (C.48:3-86.1).
���� �Time-of-use rate� means a
rate design in which prices vary across two or more pricing periods in a day.
���� �Time-varying rate� means a
rate design that features variations in electricity prices by time period.�
�Time-varying rate� shall include, but not be limited to, time-of-use rates.
���� 3.��� The board shall require
each electric public utility to develop, in a manner determined by the board, time-varying
rates for eligible residential customers.� An eligible residential customer may
opt-in to be charged the time-varying rate after the board approves the
electric public utility�s updated schedule of tariffs pursuant to subsection a.
of section 5 of P.L. , c.
(C. ) (pending before the
Legislature as this bill).� The board shall determine how existing time-varying
rates are incorporated into the time-varying rates required by this section.
���� 4.��� a.� The board, in
consultation with the Department of Community Affairs, the Department of
Environmental Protection, and the New Jersey Economic Development Authority,
shall develop best practices for incorporating eligible residential customers
under time-varying rates, pursuant to section 3 of P.L. , c. (C. )
(pending before the Legislature as this bill), into any applicable existing
energy efficiency or ratepayer assistance program.
���� b.��� The board shall require
each electric public utility to implement the best practices established
pursuant to subsection a. of this section.
���� 5.��� a.� Each electric public
utility shall file with the board an updated schedule of tariffs for approval,
which schedule shall reflect any necessary changes to the electric public
utility�s rates as a result of offering time-varying rates to eligible
residential customers pursuant to section 3 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� b.��� Upon the approval of an updated
schedule of tariffs, pursuant to subsection a. of this section, an electric
public utility shall notify the electric public utility�s eligible residential customers
of the availability of time-varying rates.� The notice shall be included with
each eligible residential customer�s first utility bill following the date of
the approval pursuant to subsection a. of this section and shall include, but
not be limited to:�
���� (1)�� the residential
customer�s eligibility for a time-varying rate;
���� (2)�� the potential benefits
of switching to a time-varying rate; and
���� (3)�� an explanation of how
the residential customer may opt-in to be charged a time-varying rate.
���� 6.��� a.� Within one year of
the approval of the schedule of tariffs, pursuant to subsection b. of section 5
of P.L. , c.
(C. ) (pending before the
Legislature as this bill), the board shall submit a report to the Governor, and
to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1),
which report shall include:�
���� (1)�� a comprehensive
description of the available time-varying rates and the percentage of eligible residential
customers enrolled under a time-varying rate;
���� (2)�� an assessment of the
impact of the time-varying rates on enrolled residential customers� electricity
use and cost;
���� (3)�� an assessment of enrolled
residential customers� satisfaction with time-varying rates and of how well enrolled
residential customers understand their utility bill; and
���� (4)�� recommendations on
implementing opt-out rather than opt-in time-varying rates, including, but not
limited to, draft regulations and recommendations for legislation.
���� b.��� In the event that the
report required pursuant to subsection a. of this section is not prepared and
submitted to the Governor and the Legislature within one year, the board shall
provide an explanation of any delay and the anticipated timing for the
submission of the report.
���� 7.��� The board shall, in
accordance with the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.), adopt rules and regulations as necessary to implement this act.
���� 8.��� This act shall take
effect immediately.
STATEMENT
���� This bill, to be known as the
�Efficient Energy Use Act,� requires each electric public utility to develop,
in a manner determined by the Board of Public Utilities (board), time-varying
rates that eligible residential customers may opt-in to be charged.� The bill
further requires each electric public utility to provide notices to eligible
residential customers after the board�s approval of an updated schedule of
tariffs that reflects any changes to rates as a result of offering time-varying
rates.
���� Additionally, the bill
requires the board, in consultation with the Department of Community Affairs, the
Department of Environmental Protection, and the New Jersey Economic Development
Authority, to develop best practices for incorporating eligible residential
customers into any applicable existing energy efficiency or ratepayer
assistance program.
���� Finally, the bill requires the
board to provide the Governor and the Legislature with a report on time-varying
rates within one year of the board�s approval of the updated schedule of
tariffs, as outlined in the bill.
���� Under the bill, an �eligible
residential customer� means a residential customer of an electric public
utility whose electricity usage is measured using a smart meter.