The Efficient Energy Use Act mandates that each electric public utility in New Jersey develop time-varying rates for eligible residential customers, who are defined as those using smart meters. These customers will have the option to opt-in to these rates once the Board of Public Utilities (board) approves the utility's updated tariff schedule. The bill also requires utilities to notify eligible customers about the availability of these rates, including information on eligibility, potential benefits, and the opt-in process.

Additionally, the board is tasked with collaborating with various state departments to establish best practices for integrating eligible residential customers into existing energy efficiency or ratepayer assistance programs. Within one year of the tariff approval, the board must submit a report to the Governor and the Legislature detailing the time-varying rates, customer enrollment statistics, impacts on electricity use and costs, customer satisfaction, and recommendations for potentially shifting to an opt-out system. The act is set to take effect immediately upon passage.