WeVote
Log In

Bill

Bill

A 5652

Allows counties to opt out of providing certain optional Medicaid benefits to prospective beneficiaries

2025 Regular Session Introduced by Will Barclay and 8 co-sponsors

The bill bars approving residential rate increases that use inclining block pricing, requiring rules to phase out this dated structure.

REFERRED TO HEALTH
0
WeVote Research Nonpartisan
Bill Summary · A 5652

Summary of New Jersey Assembly Bill A 5652

Overview

  • Bill Number: A 5652
  • Title: An Act concerning inclining block rates and supplementing Title 48 of the Revised Statutes
  • Introduced: May 8, 2025
  • Status (as of filing): Referred to Assembly Telecommunications and Utilities Committee (note: the provided text also lists a Health committee reference, which appears to be inconsistent with the bill’s subject). Companion: S 4573

Purpose and Intent

  • The bill aims to prohibit the Board of Public Utilities (BPU) from authorizing any rate increase for electric or gas public utilities if the proposed rate includes an inclining block rate for residential customers.
  • The sponsor’s stated intent is to eliminate inclining block rates, which are deemed outdated and not cost-reflective. A 2024 board-commissioned report described these rates as not aligning with actual power costs. The sponsor anticipates that eliminating inclining block rates could reduce residential electricity costs, especially during the summer months.

Key Provisions

  1. Definitions

    • Board means the Board of Public Utilities or its successor.
    • Electric public utility and Gas public utility refer to utilities distributing electricity or gas to end users in New Jersey.
    • Inclining block rate is a rate structure that increases the price of electricity or gas once usage crosses predefined thresholds, irrespective of when consumption occurs.

  2. Prohibition on Inclining Block Rate Increases

    • The bill prohibits the BPU from approving any rate increase for an electric or gas public utility if the proposed charge includes an inclining block rate for residential customers.

  3. Rulemaking Authority

    • The BPU must adopt rules and regulations, under the Administrative Procedure Act, to implement the bill’s provisions.

  4. Effective Date

    • The act takes effect immediately upon enactment.

Affected Parties

  • Primary beneficiaries/affected entities:
    • Residential customers of electric and gas public utilities in New Jersey (due to the removal of inclining block rate increases).
    • The Board of Public Utilities, which would be required to regulate and implement the new constraint via rulemaking.
  • Utilities impacted: Electric and gas public utilities operating in New Jersey.

Background and Context

  • The bill references a December 9, 2024 report prepared for the BPU, “An Assessment of Energy Affordability in New Jersey and Alternative Policy and Rate Options,” which concluded that inclining block rates are outdated and not cost-reflective.
  • The sponsor argues that removing inclining block rates aligns with a more cost-reflective pricing approach and could lower residential summer electricity bills.

Legislative Schedule and Related Actions

  • Introduced: May 8, 2025 (A 5652)
  • Committee Referral: Assembly Telecommunications and Utilities Committee (and a noted Health referral in the provided record, though the bill’s subject is utilities)
  • Related/Companion Bills:
    • S 4573 (Senate companion)
    • A 4072, A 1573, A 1104, A 11281, A 2938, A 2806, A 4830, A 5462 (prior-session references)

Practical Considerations

  • If enacted, the bill would shift how residential rates are designed, specifically eliminating a pricing mechanism that increases charges with higher usage.
  • The rulemaking process will be critical to define how the prohibition is implemented, handle transitional issues, and address any potential compliance concerns for utilities.
  • The immediate effect is regulatory rather than financial until rules are in place and any backlog of approved inclining block rate proposals is addressed.

Summary

A 5652 seeks to stop the approval of rate increases that rely on inclining block rate structures for residential customers, requiring the BPU to adopt implementing rules and moving New Jersey toward eliminating this dated rate design. The intended outcome is lower and more cost-reflective summer electricity costs for households, aligning pricing with the findings of the board’s 2024 affordability assessment.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.