This bill mandates the Board of Public Utilities (BPU) to establish best practices for electric public utilities, which will be based on national, state, and industry standards in areas such as electric generation, transmission, operations and maintenance, consumer education, business management, and cost containment. The BPU is also required to create objective benchmarks to assess compliance with these best practices. When reviewing requests for rate increases from electric public utilities, the BPU must evaluate the utilities' compliance efforts and actual compliance with the established best practices, considering their progress towards the benchmarks and how they compare to other utilities in New Jersey.

Furthermore, the bill prohibits the BPU from approving any rate increase for a utility that does not demonstrate adequate progress towards meeting the benchmarks at the time of their base rate case filing. If a utility's request is denied, the BPU must provide a compliance assessment that includes remedial action steps for the utility to improve. The BPU is also tasked with periodically updating the best practices to align with current standards and making them accessible on its website.