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 covering various aspects 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 and determine what constitutes adequate progress for electric public utilities.

When reviewing requests for rate increases from electric public utilities, the BPU must evaluate the utilities' compliance with the established best practices. If a utility fails to demonstrate adequate progress towards meeting the benchmarks, the BPU is prohibited from approving the rate increase. In cases where a rate increase is denied, the BPU must provide the utility with a compliance assessment and remedial action steps. Additionally, the BPU is tasked with periodically updating the best practices and making them accessible on its website.