Bill Text: NJ S4435 | 2026-2027 | Regular Session | Introduced
Bill Title: "Efficient Energy Use Act"; requires certain public utilities to offer time-varying rates.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-08 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S4435 Detail]
Download: New_Jersey-2026-S4435-Introduced.html
Sponsored by:
Senator JOHN F. MCKEON
District 27 (Essex and Passaic)
SYNOPSIS
"Efficient Energy Use Act"; requires certain public utilities to offer time-varying rates.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning time-varying rates 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 "Efficient Energy Use Act."
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Board" means the New Jersey Board of Public Utilities or a successor entity.
"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.
"Eligible residential customer" means a residential customer of an electric public utility whose electricity usage is measured using a smart meter.
"Enrolled residential customer" means an eligible residential customer who has opted-in to be charged a time-varying rate established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Smart meter" means the same as that term is defined in section 1 of P.L.2025, c.47 (C.48:3-86.1).
"Time-of-use rate" means a rate design in which prices vary across two or more pricing periods in a day.
"Time-varying rate" means a rate design that features variations in electricity prices by time period. "Time-varying rate" shall include, but not be limited to, time-of-use rates.
3. The board shall require each electric public utility to develop, in a manner determined by the board, time-varying rates for eligible residential customers. An eligible residential customer may opt-in to be charged the time-varying rate after the board approves the electric public utility's updated schedule of tariffs pursuant to subsection a. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). The board shall determine how existing time-varying rates are incorporated into the time-varying rates required by this section.
4. a. The board, in consultation with the Department of Community Affairs, the Department of Environmental Protection, and the New Jersey Economic Development Authority, shall develop best practices for incorporating eligible residential customers under time-varying rates, pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), into any applicable existing energy efficiency or ratepayer assistance program.
b. The board shall require each electric public utility to implement the best practices established pursuant to subsection a. of this section.
5. a. Each electric public utility shall file with the board an updated schedule of tariffs for approval, which schedule shall reflect any necessary changes to the electric public utility's rates as a result of offering time-varying rates to eligible residential customers pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Upon the approval of an updated schedule of tariffs, pursuant to subsection a. of this section, an electric public utility shall notify the electric public utility's eligible residential customers of the availability of time-varying rates. The notice shall be included with each eligible residential customer's first utility bill following the date of the approval pursuant to subsection a. of this section and shall include, but not be limited to:
(1) the residential customer's eligibility for a time-varying rate;
(2) the potential benefits of switching to a time-varying rate; and
(3) an explanation of how the residential customer may opt-in to be charged a time-varying rate.
6. a. Within one year of the approval of the schedule of tariffs, pursuant to subsection b. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), which report shall include:
(1) a comprehensive description of the available time-varying rates and the percentage of eligible residential customers enrolled under a time-varying rate;
(2) an assessment of the impact of the time-varying rates on enrolled residential customers' electricity use and cost;
(3) an assessment of enrolled residential customers' satisfaction with time-varying rates and of how well enrolled residential customers understand their utility bill; and
(4) recommendations on implementing opt-out rather than opt-in time-varying rates, including, but not limited to, draft regulations and recommendations for legislation.
b. In the event that the report required pursuant to subsection a. of this section is not prepared and submitted to the Governor and the Legislature within one year, the board shall provide an explanation of any delay and the anticipated timing for the submission of the report.
7. 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 act.
8. This act shall take effect immediately.
STATEMENT
This bill, to be known as the "Efficient Energy Use Act," requires each electric public utility to develop, in a manner determined by the Board of Public Utilities (board), time-varying rates that eligible residential customers may opt-in to be charged. The bill further requires each electric public utility to provide notices to eligible residential customers after the board's approval of an updated schedule of tariffs that reflects any changes to rates as a result of offering time-varying rates.
Additionally, the bill requires the board, in consultation with the Department of Community Affairs, the Department of Environmental Protection, and the New Jersey Economic Development Authority, to develop best practices for incorporating eligible residential customers into any applicable existing energy efficiency or ratepayer assistance program.
Finally, the bill requires the board to provide the Governor and the Legislature with a report on time-varying rates within one year of the board's approval of the updated schedule of tariffs, as outlined in the bill.
Under the bill, an "eligible residential customer" means a residential customer of an electric public utility whose electricity usage is measured using a smart meter.
