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 (BPU). If excess profits are identified, utilities are required to redistribute these profits to customers through various mechanisms, such as bill credits, direct payments for unpaid balances, or payments to customers enrolled in utility assistance programs. Utilities must comply with the BPU's order to redistribute excess profits within 45 days, and any excess profits returned to customers cannot be recovered from ratepayers.

Additionally, the bill requires public utilities to file an annual financial report with the BPU detailing their actual revenues, total revenue requirements, and any credits or payments issued to customers. Utilities that fail to comply with the redistribution requirements or misrepresent information in their reports may face 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 assistance to residential customers.