The Public Utility Regulatory Reform Act aims to restructure the electric and gas public utility industries in New Jersey by allowing electric public utilities to own and operate electric generation facilities, a change from previous restrictions under the Electric Discount and Energy Competition Act (EDECA). Utilities that choose 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 exercise retail choice through electric power suppliers. Similarly, gas public utilities can opt to discontinue retail choice for residential customers under the same conditions, also requiring updated tariff filings with the BPU.

Additionally, the bill establishes a comprehensive process for electric public utilities to obtain a certificate of public convenience and necessity before constructing new electric facilities. This process includes submitting a notice of intent, conducting public hearings, and undergoing thorough assessments to ensure alignment with state energy needs and environmental standards. The legislation also introduces a fault determination process for accidents at electric facilities, ensuring that utilities cannot recover costs from ratepayers if found at fault. Overall, the bill seeks to enhance regulatory oversight and promote responsible energy development in New Jersey.