New Jersey S 728: Applies certain public contract bid threshold amounts to local pay to play and prevailing wage laws.*

Bill Text

S728 

SENATE, No. 728 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

Senator SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Senator McKnight

SYNOPSIS

���� Requires BPU to determine and consider lowest 
reasonable return on equity before approving electric, gas, and water public 
utility base rate cases.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning the 
approval process for electric, gas, and water public utility rate increases and 
supplementing Title 48 of the Revised Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� a.� As used in this 
section:

���� �Board� means the Board of 
Public Utilities.

���� �Electric public utility� 
means a public utility, as that term is defined in R.S.48:2-13, that transmits 
and distributes electricity to end users within the State.

���� �Gas public utility� means a 
public utility, as that term is defined in R.S.48:2-13, that distributes gas to 
end users within the State.

���� �Return on equity� means the 
return on the equity portion of the rate base that electric public utilities, 
gas public utilities, or water public utilities are authorized to collect as 
part of a rate charged to ratepayers.

���� �Water public utility� means a 
public utility, as that term is defined in R.S.48:2-13, that transports and 
provides water to end users within the State.

���� b.��� In determining just and 
reasonable rates for any electric public utility, any gas public utility, or 
any water public utility pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 
of P.L.1962, c.198 (C.48:2-21.2), the board shall determine and consider the 
lowest reasonable return on equity as a factor in determining if an increase, 
change, or alteration to any existing rates, charges, or schedules thereof is 
just and reasonable.

���� c.���� To determine the lowest 
reasonable return on equity pursuant to subsection b. of this section, the 
board shall develop or adopt and apply analytic models that reflect, at a 
minimum, State, federal, and industry standards for determining a fair and 
reasonable authorized return on equity for electric public utilities, gas 
public utilities, and water public utilities.

���� d.��� The board shall adopt, 
pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et 
seq.), rules and regulations as may be necessary for the implementation of this 
act.

���� 2.��� This act shall take 
effect on the first day of the sixth month next following enactment and shall 
apply to petitions submitted to the Board of Public Utilities pursuant to 
R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1962, c.198 (C.48:2-21.2) on 
or after the effective date.� The Board of Public Utilities may take any 
anticipatory administrative action in advance as shall be necessary for the 
implementation of this act. 

STATEMENT

����� This bill requires the Board of Public 
Utilities (board) to determine and consider the lowest reasonable return on 
equity (ROE) in determining whether an electric public utility�s, gas public 
utility�s, or water public utility�s rate increase proposed as part of a base 
rate case is just and reasonable.� To determine the lowest reasonable ROE, the 
board is required to develop or adopt and apply analytic models that reflect, 
at a minimum, State, federal, and industry standards for determining a fair and 
reasonable authorized ROE for electric public utilities, gas public utilities, 
and water public utilities.

���� Under current law, the board 
may approve a petition by an electric public utility, gas public utility, or 
water public utility to increase, change, or alter any existing utility rates 
upon a determination that the increase, change, or alteration is just and 
reasonable.� When determining whether a requested rate adjustment is just and 
reasonable, the board considers:� (1) the public utility�s property valuation 
(i.e., the rate base); (2) the public utility�s expenses; and (3) the public 
utility�s rate of return, which includes the ROE.