This bill prohibits electric public utilities in New Jersey from imposing a reconciliation charge on their customers. A reconciliation charge is defined as a positive dollar amount that utilities charge customers to recover the difference between estimated and actual costs of providing electricity service, which can include various costs such as basic generation service costs, administrative costs, fees, credits, taxes, and interest.

The intent of the bill is to encourage electric public utilities to engage in long-term financial planning and reduce their reliance on ratepayers to cover financial losses resulting from the utilities' own business decisions. The bill is set to take effect immediately upon enactment.