Bill Text: NJ A5038 | 2026-2027 | Regular Session | Introduced
Bill Title: "Utility Rate Recovery Fairness Act"; prohibits electric public utilities and gas public utilities from recovering certain costs.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-11 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A5038 Detail]
Download: New_Jersey-2026-A5038-Introduced.html
Sponsored by:
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
"Utility Rate Recovery Fairness Act"; prohibits electric public utilities and gas public utilities from recovering certain costs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain public utility rate recovery and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Utility Rate Recovery Fairness Act."
2. a. As used in this section:
"Board" means the New Jersey Board of Public Utilities or a successor agency.
"Electric public utility" means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State.
"Gas public utility" means a public utility, as that term is defined in R.S.48:2-13, that distributes gas to end users within the State.
"Governmental affairs agent" means a natural person who receives or agrees to receive, compensation to influence any measure, regulation, or governmental processes in the State.
"Lobbying" means to engage or otherwise uses the services of any governmental affairs agent to influence any measures, regulations, or governmental processes in the State.
"Rate proceeding" means any hearing or proceeding conducted before the board for the purpose of fixing just and reasonable rates, including, but not limited to, base rate case proceedings, pursuant to section 4 of P.L.1995, c.180 (C.48:2-21.27), and rate recovery hearings under the board's Infrastructure Investment Program, established pursuant to rules and regulations adopted by the board and published in the New Jersey Administrative Code.
b. Notwithstanding any law, rule, regulation, or order to the contrary, after the effective date of this section, an electric public utility, or a gas public utility, shall not recover through any component of the rates charged to the electric public utility's or gas public utility's customers, as appropriate, any costs related to the preparation, attendance, participation, or appeal of a rate proceeding, including, but not limited to:
(1) attorney fees;
(2) fees to engage expert witnesses or consultants;
(3) the portion of employee salaries associated with the preparation, attendance, participation, or appeal of a rate proceeding; and
(4) any related costs identified by the board.
c. Notwithstanding any law, rule, regulation, or order to the contrary, after the effective date of this section, an electric public utility or a gas public utility shall not recover through any component of the rates charged to either the electric public utility's or gas public utility's customers, as appropriate, any costs related to:
(1) membership dues, sponsorships, or contributions to an industry trade association, group, or related entity incorporated pursuant to section 501 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.501;
(2) lobbying;
(3) compensation for public utility executive business-related travel expenses, including but not limited to, lodging, meals, gifts, entertainment, and incidental costs; and
(4) any related costs identified by the board.
d. The board shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this section.
3. This act shall take effect immediately.
STATEMENT
This bill, to be known as the "Utility Rate Recovery Fairness Act," prohibits electric public utilities and gas public utilities from recovering through any component of the rates charged to the utility's customers, as appropriate, any costs related to the preparation, attendance, participation, or appeal of any rate proceeding before the Board of Public Utilities (board), including, but not limited to: (1) attorney fees; (2) fees to engage expert witnesses or consultants; (3) the portion of employee salaries associated with the preparation, attendance, participation, or appeal of a rate proceeding; and (4) any related costs identified by the board.
The bill further prohibits electric public utilities and gas public utilities from recovering through any component of the rates charged to the utility's customers, as appropriate, any costs related to: (1) membership dues, sponsorships, or contributions to an industry trade association, group, or related entity; (2) lobbying; (3) compensation for public utility executive business-related travel expenses, including but not limited to, lodging, meals, gifts, entertainment, and incidental costs; and (4) any related costs identified by the board.
