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S3843
SENATE, No. 3843
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 10, 2026
Sponsored by:
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
���� Requires BPU to establish best practices and to
assess electric public utilities� compliance with BPU best practices during
BPU�s review of rate increase.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning the review of electric public utility
rate increases and supplementing Title 48 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� As used in this
section:�
���� �Board� means the Board of
Public Utilities.
���� �Electric public utility� or
�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.
���� b.��� The board shall identify
and establish best practices for electric public utilities based on national,
State, and industry standards concerning:�
���� (1)�� electric generation;
���� (2)�� electric transmission;
���� (3)�� operations and
maintenance, including emergency preparedness and response and vegetation
maintenance;
���� (4)�� consumer education;
���� (5)�� business management; and
���� (6)�� affordability and cost
containment.
���� c.���� The board shall
establish objective benchmarks by which to assess an electric public utility�s
compliance with the board�s best practices established pursuant to subsection
b. of this section.� The board shall determine what constitutes an electric
public utility�s adequate progress towards meeting the benchmarks.
���� d.��� While reviewing an
electric public utility�s request to increase its rates, the board shall assess
the utility�s efforts to comply, and actual compliance, with the board�s best
practices established pursuant to subsection b. of this section.� While
conducting its assessment, the board shall consider, at a minimum:�
���� (1)�� the utility�s progress
towards, or actual satisfaction of, the benchmarks established pursuant to
subsection c. of this section; and
���� (2)�� how the utility�s
compliance with the board�s best practices compares to that of other utilities
in New Jersey.
���� The board shall not approve a
request to increase any component of an electric rate for an electric public
utility that fails to demonstrate at least adequate progress towards meeting
the benchmarks established pursuant to subsection c. of this section, as
assessed by the board at the time of the electric public utility�s base rate
case filing.� In the event the board denies an electric public utility�s
petition for a rate increase for failing to demonstrate adequate progress
towards meeting the benchmarks established pursuant to subsection c. of this
section, the board shall provide the electric public utility a copy of its best
practices benchmark compliance assessment, which assessment shall include
remedial action steps for the electric public utility to take to demonstrate
adequate progress.
���� e.���� The board shall make
periodic revisions to the best practices established pursuant to subsection b.
of this section as necessary to reflect the current national, State, and
industry standards.
���� f.���� The board shall publish
its best practices established pursuant to subsection b. of this section on the
board�s Internet website to be accessible to utilities.
���� g.��� The board shall adopt,
pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.), rules and regulations as may be necessary for the implementation of this
act.
���� 2.��� This act shall take
effect immediately.
STATEMENT
���� This bill requires the Board
of Public Utilities (board) to establish best practices for electric public
utilities and to consider a utility�s compliance with such standards when
reviewing an application for a rate increase.
���� Under the bill, the board is
required to identify and establish best practices for electric public utilities
based on national, State, and industry standards concerning:� (1) electric
generation; (2) electric transmission; (3) operations and maintenance,
including emergency preparedness and response and vegetation maintenance; (4)
consumer education; (5) business management; and (6) affordability and cost
containment.
���� The board is required to
establish objective benchmarks by which to assess an electric public utility�s
compliance with the board�s best practices.� The board is to determine what
constitutes an electric public utility�s adequate progress towards meeting the
benchmarks.
���� While reviewing an electric
public utility�s request to increase its rates, the board is required to assess
the utility�s efforts to comply, and actual compliance, with the board�s best
practices.� While conducting its assessment, the board is to consider, at a
minimum:� (1) the utility�s progress towards, or actual satisfaction of, the
benchmarks established pursuant to the bill; and (2) how the utility�s
compliance with the board�s best practices compares to that of other utilities
in New Jersey.
���� Under the bill, the board is
prohibited from approving a request to increase any component of an electric
rate for an electric public utility that fails to demonstrate at least adequate
progress towards meeting the benchmarks, as assessed by the board at the time
of the electric public utility�s base rate case filing.� In the event the board
denies an electric public utility�s petition for a rate increase for failing to
demonstrate adequate progress towards meeting the benchmarks, the board is
required to provide the electric public utility a copy of its best practices
benchmark compliance assessment, including remedial action steps for the
electric public utility to take to demonstrate adequate progress.
���� The board is required to make
periodic revisions to the best practices as necessary to reflect the current
national, State, and industry standards and to publish the best practices on
its Internet website.