This bill mandates that electric power suppliers and gas suppliers in New Jersey charge residential customers rates that do not exceed the prices of basic generation service and basic gas supply service. Specifically, it stipulates that these suppliers must set their rates equal to or lower than the established prices for basic services as defined in existing law. This legislative measure is a response to anticipated increases in electricity rates, which are projected to rise by approximately 17 to 20 percent in June 2025, placing additional financial burdens on consumers amid rising living costs.

The intent of the bill is to protect New Jersey residents from excessive utility rate hikes and to ensure fair pricing practices in the energy sector. By capping the rates charged to residential customers, the bill aims to alleviate economic hardships and promote transparency in energy pricing. The sponsors emphasize the necessity of affordable and reliable energy services, highlighting that electricity and gas are essential for daily living and should not contribute to financial strain for families and individuals in the state.