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A 5398

Prohibits electric public utility residential rate increases during summer and gas public utility residential rate increases during winter.

2024-2025 Regular Session Introduced by Dawn Fantasia and 2 co-sponsors

The bill would bar residential electric rate increases during summer (June–Aug) and gas rate increases during winter (Jan–Mar in NJ.

Introduced in the Assembly, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 5398

Summary of Assembly Bill A 5398

Overview

A 5398 is an introduced New Jersey bill that would restrict when residential rate increases for electric and gas public utilities may go into effect. The bill aims to reduce “rate shock” by preventing increases during peak usage seasons for households. It would supplement Title 48 of the Revised Statutes and is currently in the Assembly, referred to the Assembly Telecommunications and Utilities Committee, after initial committee referrals in February 2025. The act would take effect immediately upon enactment.

Key Provisions

  • Definitions

    • Board: Board of Public Utilities (BPU).
    • Electric public utility: A public utility that distributes electricity to end users within New Jersey.
    • Gas public utility: A public utility that distributes gas to end users within New Jersey.

  • Seasonal prohibitions (for residential customers)

    • Electric rate increases may not go into effect during the summer season (June 1 through August 31).
    • Gas rate increases may not go into effect during the winter season (January 1 through March 31).

  • Statutory language

    • The prohibitions apply “notwithstanding any law, rule, or regulation to the contrary,” effectively prioritizing these seasonal timing limits over other regulatory rules.
    • The act is intended to be immediate in effect.

  • Scope

    • Applies only to residential customers. Non-residential (commercial/industrial) rate changes are not addressed by these provisions.

Affected Parties

  • Electric and gas public utilities operating in New Jersey, insofar as they adjust residential rates.
  • Residential electricity and gas customers, who would experience delayed or shifted timing for rate increases.
  • The Board of Public Utilities, which would oversee and implement the timing restrictions (though the bill does not specify enforcement details).

Timeline and Legislative Process

  • Introduced: February 13, 2025.
  • Initial referrals: February 13, 2025 (to Government Operations); subsequent Assembly action on March 6, 2025 (Introduced in the Assembly and referred to the Assembly Telecommunications and Utilities Committee).
  • Status: Introduced and currently under committee consideration.

Potential Impacts and Considerations

  • Economic impact: Could reduce seasonal bill increases for households by shifting or delaying rate increases, potentially smoothing energy expenditures during peak months.
  • Regulatory impact: Might require utilities and the BPU to adjust rate-case timing and filings to ensure compliance, which could affect revenue timing and planning.
  • Limitations: The bill does not address non-residential rates, specific penalties, or detailed implementation procedures beyond the prohibitions.

Sponsors

  • Primary sponsor: Steven Raga
  • Additional sponsors: John T. McDonald III, Joseph Sempolinski, Nader Sayegh, MaryJane Shimsky, Scott Gray, Carrie Woerner, Emily Gallagher, David Weprin, Patrick Chludzinski, Karen McMahon (cosponsors listed).

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

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