This bill establishes a restriction on electric and gas public utilities in New Jersey, prohibiting them from increasing rates for residential customers by more than five percent within any one-year period. The only exception to this rule is in cases of "extraordinary circumstances," which are defined as significant, non-recurring events that disrupt the normal operations of these utilities. Examples of such extraordinary circumstances include major natural disasters like hurricanes, severe earthquakes, widespread flooding, or unexpected power grid failures that necessitate immediate and extensive response efforts.

The bill aims to provide stability and predictability for residential customers regarding utility rates, ensuring that any significant increases are justified by exceptional situations. It is set to take effect immediately upon enactment.