By Nikita Biryukov, NJ Monitor
New Jersey’s gas and electric utilities will be required to inform certain customers of their energy use and costs before monthly bills are issued under a bill Gov. Phil Murphy signed into law Tuesday.
The bill is a bid to allow customers to adjust their usage to avoid unforeseen spikes in utility costs. It comes after shockingly high utility bills seen this winter, bills that are expected to rise again after rate increases add roughly $25 to monthly bills beginning in June.
“The sticker shock of large utility bills at the end of the month can be unaffordable for working families trying to manage household finances,” said bill sponsor Assemblyman David Bailey (D-Gloucester). “The early notifications will give them the ability to adjust their usage and prevent surprise bills that break their budgets.”
Under the new law, utilities must inform customers of the cost of their electricity and the amount of kilowatt hours or therms they’ve used by text message or email on the 10th and 20th days of a billing cycle.
It requires that they allow customers to sign up for a separate notice when their average daily electric or gas usage exceeds averages from the prior month or during the same month in the prior year.
It will also require utility bills to break out costs for tariffs, fees, and taxes, including distribution charges and the state’s societal benefits charge. Utilities already separate out some of that information.
The bill, which will take effect in 90 days, comes amid spiking gas and electricity prices, which are set to rise by double digits when rates are adjusted to reflect the results of a basic generation service auction held in February.
“This is a crisis in utility costs that makes it difficult for residents to manage household finances,” said bill sponsor Sen. John Burzichelli (D-Gloucester). “This program will alert homeowners and renters so they aren’t caught by surprise with exorbitant bills and are provided with real-time information so they can manage their energy consumption and better control costs.”
Lawmakers are holding joint hearings on spiking utility costs. The panel’s first hearing last month saw testimony from state energy regulators, energy experts, and PJM Interconnection, the state’s grid operator.
Democrats have increasingly sought to blame PJM for the price hikes, while Republicans have said the Murphy administration’s ambitious renewable energy goals and resistance to fossil fuel projects are a clearer cause.
The panel will hold a second hearing Friday.
