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 However, a recent report indicated that these rates are outdated and do not accurately reflect the actual costs of generating electricity or gas.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 this rate structure, thereby potentially lowering electricity rates for residential customers, particularly during the summer months.

The bill mandates that the BPU shall not approve any rate increases for utilities that utilize inclining block rates, regardless of existing laws or regulations. Additionally, it requires the BPU to adopt necessary rules and regulations to implement this provision in accordance with the Administrative Procedure Act. The act is set to take effect immediately upon passage.