This bill aims to prevent public utilities from recovering the costs associated with legal penalties through the rates charged to their customers. Specifically, it stipulates that the Board of Public Utilities is prohibited from approving any requests from public utilities to pass on these costs to ratepayers after the bill's effective date.

The legislation defines "legal penalties" as payments made by a public utility for legal wrongdoing or improper actions committed by the utility or its affiliates. By establishing this prohibition, the bill seeks to ensure that ratepayers are not financially burdened by the consequences of a public utility's legal infractions. The act is set to take effect immediately upon passage.