This bill establishes a cap on the rates that electric power suppliers and gas suppliers can charge residential customers for electric generation and gas supply services. Specifically, it mandates that these rates must be equal to or less than the prices set for basic generation service and basic gas supply service, as defined in existing law. This legislative measure is a response to anticipated increases in electricity rates approved by the Board of Public Utilities, which are projected to raise bills by approximately 17 to 20 percent starting in June 2025.

The intent of the bill is to protect New Jersey residents from excessive utility rate hikes, particularly in light of rising living costs and stagnant wages. By ensuring that residential customers are charged no more than the basic service rates, the bill aims to promote fairness and transparency in energy pricing, thereby alleviating financial strain on families and individuals. The sponsors of the bill emphasize the importance of affordable and reliable energy as essential services that support daily life and economic stability.