New Jersey Utility Restructuring Legislation

Legislation Cite and Date
A 16 (1/99)

Low-Income Provisions
Universal service is defined as “any service approved by the board with the purpose of assisting low-income residential customers in obtaining or retaining electric generation or delivery service. The law created a societal benefits charge (SBC) to fund various programs including universal service programs.

Low-Income Rate Assistance
Beginning August 1, 2003, the SBC funds a fixed credit percentage of income payment plan under which participants will be required to pay no more than six percent of their annual income toward electric and gas bills; it also includes a one-time arrearage forgiveness.

Low-Income Conservation
In March 2001, the Board ordered a three-year program to develop energy efficiency and renewable energy sources, including a low-income energy efficiency program. Called New Jersey Comfort Partners, it replaced the low-income energy efficiency programs previously operated by New Jersey utilities.

Annual Funding (2008)
Rate Assistance: $175 million for about 153,000 households

Arrearage Forgiveness: $10 million to about 50,000 households

Conservation: $26.3 million

Funding Mechanism
Rate Assistance: Societal benefits charge, all electric and gas utility customers contribute.

Conservation: Societal benefits charge, all electric and gas utility customers contribute.

Administration
Rate assistance: Department of Human Services, the LIHEAP grantee

Conservation: Utilities

Pre-Restructuring Funding
Rate Assistance: None

Conservation: $10 million

Reports / Evaluations

State Report: New Jersey, from Ratepayer-Funded Low-Income Energy Programs: Performance and Possibilities, APPRISE and Fisher, Sheehan, and Colton, July 2007

New Jersey Clean Energy Program Annual Report

Several evaluations of New Jersey Comfort Partners are on the APPRISE website at:
www.appriseinc.org/reports_usage.htm

Page Last Updated: September 24, 2009