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 a pricing structure that charges higher rates once a customer's usage surpasses certain thresholds, which has historically been used to promote energy conservation. However, a recent report indicated that these rates are outdated and do not accurately reflect the actual costs of generating electricity or gas.

The intent of the bill is to eliminate the inclining block rate structure, which is expected to lead to reduced electricity rates for residential customers, particularly during the summer months. The BPU is required to adopt necessary rules and regulations to implement this provision, ensuring that the new policy is effectively enforced. The bill is set to take effect immediately upon passage.