Electric public utilities would be prohibited from increasing the rate charged to ratepayers to recover the cost of installing smart meters under legislation (S-4096 and A-5299) introduced by Senator Carmen Amato, Jr., Assemblyman Brian Rumpf and Assemblyman Gregory Myhre.

The legislative initiative introduced by Amato, Rumpf and Myhre mirrors a bill package introduced by U.S. Congressman Jefferson Van Drew representing the 2nd Congressional District.

To protect ratepayers’ rights, the legislation requires electric public utilities to publish the following information on its Internet website and in any customer communication, including, but not limited to, a paper or electronic bill:

• the amount and effective date of the rate increase;
• the reasons for the rate increase;
• an explanation of any anticipated impact on ratepayer bills, including, but not limited to, a clear statement of the percentage by which ratepayer bills are expected to increase; and
• information on how ratepayers can provide feedback on the impact or file a complaint concerning the rate increase.

Amato, Rumpf and Myhre issued the following statement:

“Skyrocketing electric costs have created a crisis as thousands of blindsided ratepayers simply cannot afford to pay their electric bills.  Our legislation takes on even greater importance with the announcement that electric rates will be increasing in June of this year.

“New Jersey needs to take immediate and decisive action to prevent additional electric rate increases or else prepare to see thousands of residents out on the street because they cannot afford to pay their electric bill in addition to their already high property tax bills.  Utility assistance programs can only help people so much and that’s even if the ratepayer qualifies.

“Our district office has received many complaints from constituents who reported sharp increases in their electric bill shortly after having a smart meter installed.  In response, we’ve joined with Congressman Van Drew to take legislative action to address the financial hardships wrongly being imposed on ratepayers, including those who are forced to choose between buying medication or paying their utility bill.

“Excessive utility rate increases will only continue to hollow out the state’s middle class and place retirees into poverty.  Trenton needs to place a freeze on requests by utility companies for excessive rate increases that threaten the financial security of ratepayers.  Meanwhile, our Delegation is ready and willing to work in a bipartisan manner to enact legislative initiatives to control, to the greatest extent possible, utility costs as the current situation has become dire for many.”

The 9th District Delegation’s legislation also would prohibit an electric public utility from disconnecting electric service or assessing a late fee for bill nonpayment to any ratepayer affected by a rate increase resulting in an average increase of five percent or greater of ratepayer bills within six months following that rate increase.