This bill amends the regulation of municipal electric utilities in New Jersey, specifically regarding the jurisdiction of the Board of Public Utilities (BPU) over these utilities' rates. It establishes that municipalities supplying electricity, gas, steam, or other products beyond their corporate limits are considered public utilities. However, the BPU's jurisdiction over rate regulation will only apply to those municipalities that serve more than 10,000 billed customers outside their municipality. Additionally, if a municipality charges the same rates to customers both inside and outside its limits, it will be exempt from BPU regulation, with any rate increases needing to be authorized by the municipality's governing body through an ordinance.

The bill also includes provisions for municipalities to recoup operational costs and establish surpluses while ensuring that they continue to pay assessments to the BPU. Furthermore, it clarifies that municipalities supplying services to other local units or customers outside their boundaries remain under BPU jurisdiction concerning service and reliability. The amendments aim to provide more flexibility for municipal utilities while maintaining oversight where necessary. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 40A:4-35.1