ASSEMBLY, No. 1678

STATE OF NEW JERSEY

INTRODUCED MARCH 4, 1996

By Assemblymen GARRETT and GREGG

An Act limiting the jurisdiction of the Board of Public Utilities over certain consumer owned water companies and supplementing chapter 2 of Title 48 of the Revised Statutes.

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

    1. The provisions of any law, rule, regulation or order to the contrary notwithstanding, with respect to a water company which is exclusively owned and controlled by the consumers it serves, the Board of Public Utilities shall not exercise any jurisdiction or control over the rates, charges or operations of the company; and the approval of the board shall not be required to authorize or validate any mortgage or encumbrance of real property, or the issuance or execution of any evidence of indebtedness by the company, except that the board shall retain its jurisdiction to determine disputes concerning the territory served or to be served by the company.

    2. This act shall take effect immediately.

STATEMENT

    This bill supplements chapter 2 of Title 48 of the Revised Statutes to limit the jurisdiction of the Board of Public Utilities (hereinafter, "board") over any water company which is exclusively owned and controlled by the consumers it serves.

    The bill eliminates the board's jurisdiction over rates, charges and operations of such water companies, as well as the requirement of the board's approval for the authorization or validation of any mortgage or encumbrance of real property or the issuance of any evidence of indebtedness of such companies. The bill also stipulates that the board shall retain jurisdiction over disputes concerning the territory served or to be served by such a water company.

    Under current law (R.S.48:2-13), water companies are included

within the scope of public utilities subject to the board's jurisdiction.

Limits jurisdiction of the Board of Public Utilities over certain consumer owned water companies.