This bill prohibits the Board of Public Utilities (BPU) from authorizing any rate increases for electric and gas public utilities that implement inclining block rates for residential customers. An inclining block rate is defined as a pricing structure that imposes higher charges once a customer's usage surpasses certain thresholds, regardless of the time of consumption. The bill asserts that this rate structure is outdated and does not accurately reflect the actual costs of generating electricity or gas, as highlighted in a report prepared for the BPU regarding energy affordability in New Jersey.

The legislation mandates that the BPU adopt necessary rules and regulations to implement these provisions, ensuring that residential customers are protected from potential rate increases associated with inclining block rates. The intent behind this bill is to promote more equitable pricing for residential energy consumers, particularly during peak usage periods in the summer months, ultimately aiming to reduce their overall electricity costs. The act is set to take effect immediately upon passage.