The Public Utility Fair Profit Act mandates that public utilities in New Jersey conduct an annual review of their revenues to determine if they have collected excess profits, defined as revenues exceeding the total revenue requirement approved by the Board of Public Utilities. If excess profits are identified, utilities are required to redistribute these profits to customers through various mechanisms, including bill credits, direct payments for unpaid balances, or payments to those enrolled in utility assistance programs. Utilities must comply with the Board's order to redistribute excess profits within 45 days, and any excess profits returned to customers cannot be recovered from ratepayers.

Additionally, the bill stipulates that public utilities must file an annual financial report detailing their revenues and any excess profits collected, along with the credits or payments issued to customers. Failure to comply with the redistribution requirement or misrepresentation in the financial report may result in fines, which will be allocated to support utility assistance programs. The bill emphasizes the importance of returning excess profits to customers rather than shareholders, aiming to create a transparent process for financial accountability in the utility sector.