ASSEMBLY, No. 2249

 

STATE OF NEW JERSEY

 

INTRODUCED JULY 18, 1996

 

 

By Assemblyman KRAMER and Assemblywoman WRIGHT

 

 

An Act concerning contracts to supply light, heat and power and amending R.S.40:62-21.

 

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

 

    1. R.S.40:62-21 is amended to read as follows:

    40:62-21. Subject to the approval of the [board of public utility commissioners] Board of Public Utilities, any [municipality] governmental entity owning [and], partially owning, leasing, or operating a plant for supplying light, heat or power or any governmental entity which owns, partially owns, leases, controls or operates a plant or facility which generates light, heat or power as a byproduct may:

     To [adjoining municipalities.] governmental entities: a. Enter into and make a contract with any [ adjoining municipality] other governmental entity within or outside of this State to supply electricity, gas, steam or other product for light, heat or any other power purposes for public or private use [within the adjoining municipality] for a period not exceeding [ten] 28 years, at such rates and upon such terms as may be mutually agreed upon in the contract; and

     To individuals or corporations. b. Supply electricity, gas, steam or other product for light, heat or any other power purposes for public or private use to the inhabitants individually or to any private corporations within any [adjoining municipality] political subdivisions of this or any other State, if the governing body of such [adjoining municipality] political subdivision shall, by resolution, consent thereto[; and,

     To counties. c. Supply electricity, gas, steam or other product for light, heat or power purposes to the board of chosen freeholders of any county in which the municipality may be located or any county adjoining the county in which the municipality may be located, at such rates and upon such terms as shall be agreed to between the municipality and the board of chosen freeholders].

(cf: R.S.40:62-21)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would permit any governmental entity that owns, partially owns, leases, or operates a plant for supplying light, heat or power or any governmental entity that owns, partially owns, leases, controls or operates a plant or facility that generates light, heat or power as a by- product to supply power in certain situations, subject to the approval of the Board of Public Utilities.

    Under the bill these governmental entities could enter into a contract with any other governmental entity within or outside of this State to supply power for public or private use for up to 28 years at rates and on terms mutually agreed on in the contract. They could also supply power for public or private use to individual inhabitants or private corporations in any political subdivision of this or any other state if the governing body of the political subdivision consents by resolution.

    Under current law, any municipality that owns and operates a power plant may, subject to the approval of the Board of Public Utilities, enter into a contract with an adjoining municipality to supply power for up to 10 years at such rates and on such terms as are agreed upon in the contract and may supply power for public or private use to individual inhabitants or private corporations in an adjoining municipality if the governing body consents by resolution.

 

 

                             

 

Expands circumstances under which contracts can be made to supply light, heat and power.