The Public Utility Regulatory Reform Act proposes significant changes to the electric and gas public utility industries in New Jersey. It permits electric public utilities to own and operate electric generation facilities, diverging from the previous regulations established by the Electric Discount and Energy Competition Act (EDECA). Utilities that opt to own generation facilities must submit an updated tariff schedule for approval by the New Jersey Board of Public Utilities (BPU), which will eliminate the option for customers to choose retail electric power suppliers. Similarly, gas public utilities may also choose to discontinue retail choice for residential customers, necessitating the filing of updated tariffs with the BPU.

The bill establishes a structured process for electric public utilities to obtain certificates for constructing new facilities, which includes public hearings and assessments by the BPU to ensure the necessity of the proposed projects. It also addresses the issue of fault in accidents at electric facilities, stipulating that utilities found at fault cannot recover certain costs from ratepayers. The legislation aims to enhance regulatory oversight and accountability within the utility sector, ensuring that public utilities operate in a manner that serves the public interest while balancing the needs of consumers and utility companies.