This bill amends existing law to exempt municipal electric utilities from regulation by the Board of Public Utilities (BPU). Currently, if a municipality supplies any product, including electricity, beyond its corporate limits, it is classified as a public utility and falls under BPU regulation. The bill specifically removes the classification of municipal electric utilities as public utilities when they provide electricity beyond their boundaries, thereby eliminating BPU oversight of their rates and operations.

Additionally, the bill clarifies that while municipal electric utilities will not be subject to BPU regulation, the Board will still maintain jurisdiction over disputes related to the service territories of these utilities, similar to the provisions for rural electric cooperatives. This change aims to provide municipal electric utilities with greater autonomy in their operations and rate-setting processes. The bill is set to take effect three months after its enactment.

Statutes affected:
Introduced: 48:2-13.1