This bill introduces a 10 percent surtax, known as the electric public utility windfall surtax, on electric public utilities that have allocated taxable net income exceeding $10 million. The surtax is in addition to the regular corporation business tax and is designed to generate revenue for utility assistance programs that support residential customers in New Jersey. The bill specifies that no credits will be allowed against this surtax, except for certain payments related to prior tax periods. Furthermore, all revenues collected from this surtax, with specific constitutional exceptions, will be appropriated annually to the Board of Public Utilities to fund these essential utility assistance programs.

Additionally, the bill prohibits the Board of Public Utilities from approving any rate increases or charges to ratepayers that would include the costs associated with compliance to this surtax. This measure aims to protect consumers from rising utility costs, especially in light of an anticipated electricity rate increase of 17 to 20 percent set to take effect in June 2025. By taxing the excessive profits of electric public utilities and ensuring that the resulting funds are directed towards utility assistance, the bill seeks to alleviate financial burdens on New Jersey residents and promote fair pricing in the energy sector.