Legislation to Extend Utility Protections for Certain Customers Advances

Trenton – In an effort to help certain customers affected by the end of the Winter Termination Program utility moratorium on March 15^th, the Senate Law and Public Safety Committee today approved legislation sponsored by Senator Brian P. Stack, Senator Vin Gopal and Senator Linda Greenstein that would extend shutoff protection for residents waiting to hear back from the Department of Community Affairs (DCA) on whether their assistance application has been approved.

“Since early on in the pandemic, a utility moratorium has been in place to assist residents struggling to pay their bills due to circumstances beyond their control,” said Senator Stack (D-Hudson). “However, the Winter Termination Program has ended, and there are still thousands of residents waiting to hear back about their assistance applications. If a resident has filed an application to extend their payments, and they have not heard from the DCA, they are currently stuck in limbo as they await their approval. It is evident that many of our residents are in need of immediate assistance and we must continue to help them as we work to emerge from the pandemic.”

The bill, S-2356, would allow residents up to 60 days to complete their application after they have started the process. Under the bill, DCA would be required to submit a decision of approval or rejection within 90 days of receiving the application. Utility companies and the DCA would work together to verify that customers have actually submitted an application for utility assistance.

“Statewide, over 850,000 residential gas and electric customers collectively owe more than $660 million, much of which is due to the COVID-19 pandemic,” said Senator Gopal (D-Monmouth). “Residents should not be punished by having their utilities turned off while waiting to see if their assistance application is accepted. This legislation will provide DCA with the time to review the applications, while still protecting residents and preventing unnecessary shutoffs.”

Additionally, the bill would also add protections to residents who submit an application prior to June 15^th.

“While COVID-19 cases have been improving, our residents are still reeling from the economic effects that the pandemic has brought on,” said Senator Greenstein (D-Mercer/Middlesex). “It is evident that many of our residents will be greatly affected by the end of the Winter Termination Program and it is critical we do not turn our backs on them during this period. This bill would be a huge asset in providing additional assistance to our residents as we transition out of the pandemic.”

The bill was released from committee by a vote of 5-0.

“The past two years have been difficult for many families, requiring around 800,000 gas and electric customers to request aid,” said Assemblyman Mukherji (D-Hudson).  “Since the high influx of applications has extended the timeline for the State to make prompt determinations on assistance, we must extend the grace period and provide families with essential utilities while they await action on their applications for relief.”