SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1678

STATE OF NEW JERSEY

DATED: JANUARY 23, 1997

      The Senate State Government Committee reports favorably Assembly, No. 1678 (1R).

      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 nonprofit, non-publicly owned water company which is exclusively owned and controlled by the consumers it serves provided that the majority of the members of the association which controls the water company approves of the limitation.

      This 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.