New Jersey A 2398: Establishes pilot program for incentive-based value payment system for nursing homes.

Bill Text

A2398 

ASSEMBLY, No. 2398 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

SYNOPSIS

���� "Public Utility Fair Profit Act"; requires 
public utilities to take certain actions regarding excess profits and directs 
fines for violations to fund utility assistance programs.

CURRENT VERSION OF TEXT 

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

�� 

An Act �concerning public utility profits, designated 
as the �Public Utility Fair Profit Act,� and supplementing Title 48 of the 
Revised Statutes.

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

���� 1.��� As used in 
P.L. , c. 
(C. ) (pending before the 
Legislature as this bill):

���� �Bill credits� means credits 
issued to customers to be applied to future utility statements.

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

���� �Excess profit� means the 
amount of actual revenues collected by a public utility during a reporting 
period that exceeds the utility�s total revenue requirement approved by the 
board for the reporting period.

���� �Public utility� or �utility� 
means a public utility, as defined in R.S.48:2-13, that provides electric or 
gas, service.

���� �Reporting period� means the 
12-month period prescribed by the board for the purpose of a public utility�s 
compliance with P.L. , c. 
(C. ) (pending before the 
Legislature as this bill).

���� �Total revenue requirement� 
means the total amount of revenue that a public utility is approved to recover 
through utility rates during a reporting period, as approved by the board in 
the utility�s most recent base rate case, and including any additional amounts 
of revenue that the board has approved the public utility to recover through an 
alternative rate recovery mechanism during the reporting period, including, but 
not limited to, any charge approved pursuant to an infrastructure investment 
program.

���� �Utility assistance program� 
means any State program that offers financial assistance for utility services 
to residential customers or otherwise establishes utility protections for 
residential customers.

���� 2.��� a.� No later than three 
months following the completion of its reporting period, a public utility shall 
perform an annual review of the actual revenues collected by the utility during 
the reporting period and the total revenue requirement approved by the board 
for that reporting period, which review shall be used to determine the 
utility�s excess profits, if any, for the reporting period. 

���� b.��� If a public utility 
collected excess profits during the previous reporting period, the public 
utility shall redistribute its excess profits to customers, in a proportional 
manner, through a refund mechanism to be reviewed and approved by the board, 
including:

���� (1)�� bill credits applied to 
future utility bills;

���� (2)�� direct payments for 
customers with unpaid balances; or

���� (3)�� direct payments for 
customers who are enrolled in a utility assistance program.

���� c.���� A public utility shall 
redistribute its excess profits to customers, pursuant to subsection b. of this 
section, in such intervals and forms as may be prescribed by the board.� A 
public utility shall have 45 days to comply with the board�s order to redistribute 
its excess profits.� Any excess profits redistributed to customers pursuant to 
this section shall not be recoverable from ratepayers of the utility.

���� 3.��� a.� Within five months 
following the completion of its reporting period, a public utility shall file 
an annual financial report with the board in a manner and form to be determined 
by the board.� The annual report shall include, at a minimum, information 
documenting the actual revenues collected by the utility during the reporting 
period, the total revenue requirement approved by the board for the reporting 
period, and if excess profits were collected, any credits or payments issued to 
customers pursuant to section 2 of P.L. , 
c. (C. ) 
(pending before the Legislature as this bill).

���� b.��� A public utility that 
fails to redistribute excess profits to customers within 45 days of being 
ordered to do so by the board, as required pursuant to section 2 of 
P.L. , c. 
(C. ) (pending before the 
Legislature as this bill), or that knowingly misrepresents any information 
contained in the financial report submitted pursuant to this section, shall be 
subject to a fine in an amount determined by the board, except not to exceed 
the lesser of five percent of the public utility�s total revenue requirement or 
105 percent of the excess profits for the reporting period.� The civil penalty 
provided for in this section shall be recovered in an administrative proceeding 
held pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 
(C.52:14B-1 et seq.).� Any monies recov