"Utility Rate Recovery Fairness Act"; prohibits electric public utilities and gas public utilities from recovering certain costs.

A5038

ASSEMBLY, No. 5038

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Assemblyman� DAVID BAILEY, JR.

District 3 (Cumberland, Gloucester and Salem)

SYNOPSIS

���� �Utility Rate Recovery Fairness Act�; prohibits
electric public utilities and gas public utilities from recovering certain
costs.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain public utility rate recovery 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 �Utility Rate Recovery Fairness Act.�

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

���� �Board� means the New Jersey Board
of Public Utilities or a successor agency.

���� �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.

���� "Governmental affairs
agent" means a natural person who receives or agrees to receive,
compensation to influence any measure, regulation, or governmental processes in
the State.

���� �Lobbying� means to engage or
otherwise uses the services of any governmental affairs agent to influence any measures,
regulations, or governmental processes in the State.

���� �Rate proceeding� means any hearing
or proceeding conducted before the board for the purpose of fixing just and
reasonable rates, including, but not limited to, base rate case proceedings,
pursuant to section 4 of P.L.1995, c.180 (C.48:2-21.27), and rate recovery hearings
under the board�s Infrastructure Investment Program, established pursuant to rules
and regulations adopted by the board and published in the New Jersey
Administrative Code.

���� b.��� Notwithstanding any law,
rule, regulation, or order to the contrary, after the effective date of this
section, an electric public utility, or a gas public utility, shall not recover
through any component of the rates charged to the electric public utility�s or
gas public utility�s customers, as appropriate, any costs related to the
preparation, attendance, participation, or appeal of a rate proceeding,
including, but not limited to:�

���� (1)�� attorney fees;

���� (2)�� fees to engage expert
witnesses or consultants;

���� (3)�� the portion of employee
salaries associated with the preparation, attendance, participation, or appeal
of a rate proceeding; and

���� (4)�� any related costs
identified by the board.

���� c.���� Notwithstanding any
law, rule, regulation, or order to the contrary, after the effective date of
this section, an electric public utility or a gas public utility shall not
recover through any component of the rates charged to either the electric
public utility�s or gas public utility�s customers, as appropriate, any costs
related to:�

���� (1)�� membership dues,
sponsorships, or contributions to an industry trade association, group, or
related entity incorporated pursuant to section 501 of the federal Internal
Revenue Code of 1986, 26 U.S.C. s.501;

���� (2)�� lobbying;

���� (3)�� compensation for public
utility executive business-related travel expenses, including but not limited
to, lodging, meals, gifts, entertainment, and incidental costs; and

���� (4)�� any related costs
identified by the board.

���� d.��� 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 section.

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill, to be known as the
�Utility Rate Recovery Fairness Act,� prohibits electric public utilities and
gas public utilities from recovering through any component of the rates charged
to the utility�s customers, as appropriate, any costs related to the
preparation, attendance, participation, or appeal of any rate proceeding before
the Board of Public Utilities (board), including, but not limited to: �(1)
attorney fees; (2) fees to engage expert witnesses or consultants; (3) the
portion of employee salaries associated with the preparation, attendance,
participation, or appeal of a rate proceeding; and (4) any related costs
identified by the board.

���� The bill further prohibits electric
public utilities and gas public utilities from recovering through any component
of the rates charged to the utility�s customers, as appropriate, any costs
related to: �(1) membership dues, sponsorships, or contributions to an industry
trade association, group, or related entity; (2) lobbying; (3) compensation for
public utility executive business-related travel expenses, including but not
limited to, lodging, meals, gifts, entertainment, and incidental costs; and (4)
any related costs identified by the board.