This bill aims to limit the financial burden on residential customers by prohibiting the Board of Public Utilities (BPU) from approving any electric or gas public utility rate increases that would lead to an increase in the average residential customer bill of more than two percent per year. This measure is intended to provide greater financial predictability and protection for consumers against rising utility costs.

The bill is set to take effect immediately upon enactment, ensuring that the new regulations are implemented without delay. By establishing this cap on rate increases, the legislation seeks to safeguard households from significant spikes in their utility expenses, promoting affordability and stability in energy costs for New Jersey residents.