A 2398

ASSEMBLY, No. 2398
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
���� "Public Utility Fair Profit Act"; requires
public utilities to take certain actions regarding excess profits and directs
fines for violations to fund utility assistance programs.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act �concerning public utility profits, designated
as the �Public Utility Fair Profit Act,� and supplementing Title 48 of the
Revised Statutes.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in
P.L.    , c.
(C.        ) (pending before the
Legislature as this bill):
���� �Bill credits� means credits
issued to customers to be applied to future utility statements.
���� �Board� means the Board of
Public Utilities.
���� �Excess profit� means the
amount of actual revenues collected by a public utility during a reporting
period that exceeds the utility�s total revenue requirement approved by the
board for the reporting period.
���� �Public utility� or �utility�
means a public utility, as defined in R.S.48:2-13, that provides electric or
gas, service.
���� �Reporting period� means the
12-month period prescribed by the board for the purpose of a public utility�s
compliance with P.L.    , c.
(C.        ) (pending before the
Legislature as this bill).
���� �Total revenue requirement�
means the total amount of revenue that a public utility is approved to recover
through utility rates during a reporting period, as approved by the board in
the utility�s most recent base rate case, and including any additional amounts
of revenue that the board has approved the public utility to recover through an
alternative rate recovery mechanism during the reporting period, including, but
not limited to, any charge approved pursuant to an infrastructure investment
program.
���� �Utility assistance program�
means any State program that offers financial assistance for utility services
to residential customers or otherwise establishes utility protections for
residential customers.
���� 2.��� a.� No later than three
months following the completion of its reporting period, a public utility shall
perform an annual review of the actual revenues collected by the utility during
the reporting period and the total revenue requirement approved by the board
for that reporting period, which review shall be used to determine the
utility�s excess profits, if any, for the reporting period.
���� b.��� If a public utility
collected excess profits during the previous reporting period, the public
utility shall redistribute its excess profits to customers, in a proportional
manner, through a refund mechanism to be reviewed and approved by the board,
including:
���� (1)�� bill credits applied to
future utility bills;
���� (2)�� direct payments for
customers with unpaid balances; or
���� (3)�� direct payments for
customers who are enrolled in a utility assistance program.
���� c.���� A public utility shall
redistribute its excess profits to customers, pursuant to subsection b. of this
section, in such intervals and forms as may be prescribed by the board.� A
public utility shall have 45 days to comply with the board�s order to redistribute
its excess profits.� Any excess profits redistributed to customers pursuant to
this section shall not be recoverable from ratepayers of the utility.
���� 3.��� a.� Within five months
following the completion of its reporting period, a public utility shall file
an annual financial report with the board in a manner and form to be determined
by the board.� The annual report shall include, at a minimum, information
documenting the actual revenues collected by the utility during the reporting
period, the total revenue requirement approved by the board for the reporting
period, and if excess profits were collected, any credits or payments issued to
customers pursuant to section 2 of P.L.    ,
c.    (C.        )
(pending before the Legislature as this bill).
���� b.��� A public utility that
fails to redistribute excess profits to customers within 45 days of being
ordered to do so by the board, as required pursuant to section 2 of
P.L.    , c.
(C.        ) (pending before the
Legislature as this bill), or that knowingly misrepresents any information
contained in the financial report submitted pursuant to this section, shall be
subject to a fine in an amount determined by the board, except not to exceed
the lesser of five percent of the public utility�s total revenue requirement or
105 percent of the excess profits for the reporting period.� The civil penalty
provided for in this section shall be recovered in an administrative proceeding
held pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.).� Any monies recovered pursuant to this penalty shall be
allocated to supplement existing funding for utility assistance programs
administered by the board.� Any penalty imposed pursuant to this section shall
not be recoverable from ratepayers of the utility.
���� 4.��� 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.
���� 5.��� This act shall take
effect immediately, except that sections 2 and 3 of this act shall remain
inoperative until the board adopts rules and regulations pursuant to section 4
of this act.
STATEMENT
����� This bill, which is designated as the �Public Utility
Fair Profit Act,� requires each electric public utility and gas public utility
to annually review its actual revenues collected during the year and its total
revenue requirement to determine if the public utility collected excess profits
during that year.
After any year in which a public
utility collected excess profits, the bill requires the public utility to
redistribute its excess profits to customers, in a proportional manner and in
such intervals as may be prescribed by the board, through a refund mechanism
subject to board approval, including:
����� (1)� bill credits applied to future utility bills;
����� (2)� direct payments for customers with unpaid
balances; or
����� (3)� direct payments for customers who are enrolled
in a utility assistance program.
����� The bill provides that a public utility has 45 days
to comply with the board�s order to redistribute its excess profits.� The
excess profit redistributed by a public utility is not recoverable from
ratepayers of the utility.
����� Public utilities are required to file an annual
financial report with the board in a manner and form to be determined by the
board.� At a minimum, the report is to include information documenting the
public utility�s actual revenues collected, the total revenue requirement, and
if excess profits were collected, any bill credits or direct payments issued to
customers.
����� A public utility that fails to redistribute excess
profits to customers within 45 days of being ordered to do so by the board, or
that knowingly misrepresents any information contained in the financial report,
will be subject to a fine in an amount determined by the board, not to exceed
the lesser of five percent of the public utility�s total revenue requirement or
105 percent of the public utility�s excess profits.� This civil penalty is to
be recovered in an administrative proceeding and will be allocated to
supplement existing funding for utility assistance programs.� Public utilities
are prohibited from recovering any penalty from ratepayers.
����� The bill defines �excess profit� as the amount of
actual revenues collected by a public utility during a reporting period that
exceeds the utility�s total revenue requirement approved by the board for the
reporting period. �Total revenue requirement� means the total amount of revenue
that a public utility is approved to recover through utility rates during a
reporting period, as approved by the board in the utility�s most recent base
rate case, and including any additional amounts of revenue that the board has
approved the public utility to recover through an alternative rate recovery
mechanism during the reporting period, including, but not limited to, any
charge approved pursuant to an infrastructure investment program.