Bill Text: NJ A5004 | 2018-2019 | Regular Session | Introduced


Bill Title: Establishes terms and conditions for refunding public utility deposits for servicer and interest on those deposits.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-02-07 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A5004 Detail]

Download: New_Jersey-2018-A5004-Introduced.html

ASSEMBLY, No. 5004

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED FEBRUARY 7, 2019

 


 

Sponsored by:

Assemblyman  RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Establishes terms and conditions for refunding public utility deposits for service and interest on those deposits.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the return of deposits for public utility service and amending R.S.48:2-29.5.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    R.S.48:2-29.5 is amended to read as follows:

     48:2-29.5.   [Regulating deposits by customers to secure payment for services; interest on deposits]  a.  The board [may] shall adopt rules and regulations prescribing the terms and conditions under which public utilities may require the deposit of moneys to secure the payment by customers of such sums as may become due for services to be rendered and the conditions under which repayment of moneys deposited for such purpose shall be made.  The rules and regulations shall provide that:

     (1)   every public utility shall review a residential customer's account at least once every year and a nonresidential customer's account at least once every two years;

     (2)   if the review, pursuant to paragraph (1) of this subsection, indicates that the customer has met the public utility's standard requirements for establishing credit, the public utility shall refund the customer's deposit, plus any interest required pursuant to subsection b. of this section;

     (3)   upon closing an account, a public utility shall refund to the customer the balance of any deposit remaining after the closing bill for service has been settled, including any interest required pursuant to subsection b. of this section;

     (4)   when a public utility refunds a deposit, the public utility shall offer the customer the option of a credit to the customer's account or a separate check to the customer, unless other reasonable arrangements are made between the customer and the public utility; and

     (5)   the public utility shall provide the full refund of a deposit and any interest payment required, pursuant to subsection b. of this section, within one billing period after the review required pursuant to paragraph (1) of this subsection is completed.

     b.    The board [may] shall adopt rules and regulations prescribing the rate of interest that shall be credited or paid on moneys so deposited.  The rules and regulations shall provide that:

     (1)   a public utility shall pay the customer simple interest on any deposit established at a rate determined by the board;

     (2)   an interest payment on a customer deposit held to secure a residential account shall be made to the customer at least once during each 12-month period in which a deposit is held; and

     (3)   when a public utility pays a customer interest on a deposit, the public utility shall offer the customer the option of a credit to the customer's account or a separate check to the customer, unless other reasonable arrangements are made between the customer and the public utility.

(cf: R.S.48:2-29.5)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the Board of Public Utilities (BPU) to adopt rules and regulations prescribing the terms and conditions under which public utilities may require the deposit of moneys to secure payment by customers for public utility services rendered and the conditions under which moneys deposited for that purpose are to be returned to public utility customers with interest.

     The bill codifies the regulations applicable to the return of, and interest paid on, deposits that are presently prescribed in the New Jersey Administrative Code.

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