The Public Utility Regulatory Reform Act seeks to overhaul the electric and gas public utility sectors in New Jersey by allowing electric public utilities to own and operate electric generation facilities, a change from previous restrictions under the Electric Discount and Energy Competition Act. As part of this restructuring, utilities that choose to own generation facilities must submit updated tariff schedules for approval by the New Jersey Board of Public Utilities (BPU), which will eliminate the option for customers to exercise retail choice through electric power suppliers. Similarly, gas public utilities are granted the option to discontinue retail choice for residential customers under the same conditions.

Additionally, the bill establishes a detailed process for electric public utilities to obtain certificates for constructing new electric facilities, which includes public hearings and assessments by the BPU to ensure the necessity of the proposed facilities. The BPU must confirm that no better alternatives exist before issuing a certificate. The legislation also addresses rate increases related to accidents at electric facilities, ensuring that utilities found at fault cannot recover certain costs from ratepayers. Overall, the bill aims to enhance regulatory oversight and streamline the governance of public utilities in New Jersey.