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Bill

S 394

Prohibits public utilities from discontinuing residential electric, gas, water, and sewer service after expiration of coronavirus public health emergency; requires public utilities to implement deferred payment agreements for services.

2026-2027 Regular Session Introduced by Joe Lagana and 1 co-sponsor

New Jersey bill prevents utility shutoffs for residential customers after COVID emergency ends and requires payment plans for unpaid balances.

Introduced in the Senate, Referred to Senate Economic Growth Committee
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WeVote Research Nonpartisan
Bill Summary · S 394

Legislative bill overview

S 394 prohibits New Jersey public utilities from disconnecting residential customers' electric, gas, water, and sewer service after the federal COVID-19 public health emergency ends. The bill requires utilities to offer deferred payment agreements to residential customers, allowing them to spread unpaid balances over time rather than face service termination.

Why is this important

This bill addresses a real policy gap: federal protections that prevented utility disconnections during the pandemic are ending, potentially leaving vulnerable households without essential services. The deferred payment requirement creates a middle ground between full forgiveness and abrupt shutoffs, affecting how utilities manage collections while protecting residential access to basic services.

Potential points of contention

  • Utility company burden: Utilities argue that deferred payments reduce revenue recovery and may increase costs passed to other ratepayers; some may face financial strain managing extended payment plans
  • Scope and duration ambiguity: The bill doesn't specify how long deferment periods can be or what triggers eligibility, creating uncertainty about implementation and potential loopholes
  • Incomplete solution: The bill doesn't address the underlying debt problem—customers still owe the full amount, and some may never pay, raising questions about long-term sustainability and fairness to customers who pay on time

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

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