DeAngelo, Eustace, Mazzeo, Pintor Marin & Benson Consumer Protection Package Requiring BPU to Establish Standards for Third-Party Energy Suppliers Approved by Assembly

Legislation sponsored by Assembly Democrats Wayne DeAngelo, Tim Eustace, Vince Mazzeo, Eliana Pintor Marin and Daniel Benson to require the Board of Public Utilities (BPU) to protect consumers by establishing standards and procedures for consumer interaction with third-party electric power and gas companies received final legislative approval on Monday by the Assembly, 73-0.

The legislation is a response to testimony the Assembly Telecommunications and Utilities Committee received from consumer utilities advocates and utilities partners on the need for regulation of third-party providers.

"The deregulated market leveled the playing field for third party competitors and gave consumers the opportunity to shop around for the best rate," said DeAngelo (D-Mercer/Middlesex), chair of the Assembly Telecommunications and Utilities Committee. "However, it also has raised concerns for many regarding regulation. This legislation will begin to strengthen consumer protection for residents who choose a third party electric power or gas service as their energy provider."

 

Legislation sponsored by Assembly Democrats Wayne DeAngelo, Tim Eustace, Vince Mazzeo, Eliana Pintor Marin and Daniel Benson to require the Board of Public Utilities (BPU) to protect consumers by establishing standards and procedures for consumer interaction with third-party electric power and gas companies received final legislative approval on Monday by the Assembly, 73-0.

The legislation is a response to testimony the Assembly Telecommunications and Utilities Committee received from consumer utilities advocates and utilities partners on the need for regulation of third-party providers.

"The deregulated market leveled the playing field for third party competitors and gave consumers the opportunity to shop around for the best rate," said DeAngelo (D-Mercer/Middlesex), chair of the Assembly Telecommunications and Utilities Committee. "However, it also has raised concerns for many regarding regulation. This legislation will begin to strengthen consumer protection for residents who choose a third party electric power or gas service as their energy provider."

"Consumers are currently navigating an unregulated third party utilities market," said Eustace (D-Bergen/Passaic). "There needs to be more transparency in the process. We want consumers to continue to make their own choices with clear rules and regulations in place to guard residents who enter into these contracts with suppliers."

The bill (A-3850) requires the BPU to establish procedures allowing electric power and gas supplier customers to switch energy suppliers. The bill stipulates that the BPU will establish procedures to ensure that a customer may switch utility providers, provided the utility receives an electronic enrollment notice from the power supplier no later than 20 days prior to the next scheduled meter reading date for the switch to be effective on that date.

"Consumers, especially seniors, ought to have the opportunity to choose utility companies that provide them with quality service at a rate they can afford," said Mazzeo (D-Atlantic). "This legislation will help protect New Jersey's ratepayers from unreasonable rate increases and changes to the terms of their contracts."

"Numerous consumers in New Jersey have testified that they were unaware that they had variable rate contracts and that such contracts could result in them paying rates double or triple what they believed they had agreed to," said Pintor Marin (D-Essex). "By providing ratepayers with clear outlines of their contracts in terms they can understand, this legislation will go a long way toward increased consumer protection."

"Consumers who switch to third-party utility companies often are looking to save money, but unfortunately, they later realize that variable rates written into their contracts may end up costing them significantly more over the long run," said Benson (D-Mercer/Middlesex). "This legislation will make it easier for customers to understand from the start how they will be charged for energy usage."

The bill, which passed unanimously in the Assembly in May, was advanced by the Senate Environment and Energy Committee on September 21. The bill returned the Assembly on Monday for a concurrence on previous amendments. It will now go to Governor for further review.