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Bill

A 4012

"Energy Cost Fairness Act"; prohibits BPU from authorizing rate increases for electric and gas public utilities that charge inclining block rates for residential customers.

2026-2027 Regular Session Introduced by Alex Sauickie

New Jersey bill prohibits utilities from using inclining block rate structures for residential customers, banning tiered pricing where higher usage costs more per unit.

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Bill Summary · A 4012

Legislative bill overview

Bill A 4012 would prohibit New Jersey's Board of Public Utilities (BPU) from approving rate increases for electric and gas utilities that use inclining block rate (IBR) structures for residential customers. Inclining block rates charge higher per-unit prices as consumption increases, meaning heavy users pay more per kilowatt-hour or therm than light users. The bill effectively bans this pricing structure by preventing utilities from implementing or maintaining it through regulatory approval.

Why is this important

This directly affects how 8+ million New Jersey residents pay for electricity and natural gas—two essential services. The outcome determines whether utilities can use pricing that encourages conservation or must use flat-rate structures, affecting both consumer bills and state energy policy goals around conservation and equity.

Potential points of contention

  • Conservation vs. affordability trade-off: IBR is designed to incentivize efficiency by penalizing high consumption, but critics argue it burdens large families and low-income households that may use more energy for legitimate reasons (heating, cooling, medical devices). Opponents contend a blanket ban removes a conservation tool.
  • Utility revenue and infrastructure investment: Utilities argue IBR helps recover costs fairly from high-consumption customers. A ban could shift costs to light users or reduce funding for grid modernization and renewable energy infrastructure investments.
  • Definition of "fairness": The bill's title assumes IBR is unfair, but supporters argue it is fair because it aligns price with usage. This reflects fundamentally different philosophies about equitable rate design.

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

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