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S 4166

Requires customer consent to material changes to third-party energy supply contracts under certain circumstances.*

2026-2027 Regular Session Introduced by Troy Singleton

Residential customers must expressly consent to any material changes in their third-party energy supply contracts, with verifiable consent required.

Reported from Senate Committee with Amendments, 2nd Reading
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Bill Summary · S 4166

Overview

S 4166 (Session 222, New Jersey) seeks to protect residential customers from unexpected changes in their third-party energy supply contracts by requiring explicit consent for any “material change” to those contracts. The bill applies to third-party energy supply contracts for electric generation service or gas supply service entered into or renewed after the bill’s effective date.

Purpose and intent

  • To ensure residential customers actively approve any substantial modification to the terms of their third-party energy supply contracts.
  • To increase transparency and customer control over price, terms, and pricing structure (fixed vs. variable) in energy supply arrangements.

Key provisions

  • Definitions
    • Material change: Any change to the terms or duration of a third-party energy supply contract, including changes in price or in whether pricing is fixed or variable.
    • Third-party energy supply contract: A contract for electric generation service or gas supply service in New Jersey, between a residential customer and an electric power or gas supplier.
  • Consent requirement
    • Any material change to a qualifying contract that was entered into or renewed after the act’s effective date requires express consent from the residential customer.
    • Consent must be provided in one of three verifiable forms: verbal, electronic, or written.
    • The consent must be maintained by the electric power supplier or gas supplier in a verifiable format.
  • Regulatory implementation
    • The New Jersey Board of Public Utilities (BPU) will adopt implementing rules and regulations under the Administrative Procedure Act to carry out the provisions.
  • Effective date
    • The act takes effect immediately upon enactment and applies only to contracts entered into or renewed after the effective date.

Who is affected

  • Primary beneficiaries: Residential customers who have or may enter into third-party energy supply contracts (electric or gas) with energy suppliers.
  • Regulated entities: Electric power suppliers and gas suppliers operating in New Jersey that offer third-party energy supply contracts to residential customers.
  • Regulatory body: New Jersey Board of Public Utilities, which will develop rules to implement the bill’s requirements.

Procedural and timeline aspects

  • Introduction and consideration:
    • Introduced in the Senate and referred to the Senate Economic Growth Committee (May 11, 2026).
    • Reported from the Senate Committee with amendments and advanced to 2nd Reading (June 8, 2026).
  • Implementation:
    • The BPU is tasked with adopting rules under the Administrative Procedure Act to implement the consent requirements.
  • Scope of application:
    • Applies to contracts entered into or renewed after the effective date; does not retroactively require changes to existing pre-enactment contracts.

Potential impacts and considerations

  • Customer empowerment: Increased protections against involuntary changes in pricing terms and contract duration.
  • Compliance burden: Utilities will need processes to obtain and document verifiable consent for material changes, potentially increasing administrative work and recordkeeping.
  • Market dynamics: Could influence how third-party energy suppliers structure contracts (e.g., more straightforward or clearly defined “material changes” to avoid disputes over consent).
  • Consumer clarity: May encourage clearer communication about contract changes, pricing, and pricing structure (fixed vs. variable).

Summary

S 4166 aims to ensure residential customers expressly consent to any material changes to their third-party energy supply contracts for electricity or gas, with consent verifiable by the supplier. The Bill empowers the BPU to issue implementing regulations and takes effect immediately for contracts entered into or renewed after enactment.

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

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