SENATE, No. 1503

 

STATE OF NEW JERSEY

 

INTRODUCED SEPTEMBER 19, 1996

 

 

By Senators ADLER and MARTIN

 

 

An Act concerning the fixing of rates by the Board of Public Utilities 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 Board of Public Utilities, in determining just and reasonable rates pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1961, c.198 (C.48:2-21.2), or P.L. 1995, c. 180 (C. 48:2-21.21 et seq.), to be charged by an electric public utility that sells electric power, shall not take into consideration as part of the rate base or as any other factor in the rate, or as part of an off-tariff rate agreement, or as a factor in the rate, or any other charge to the ratepayer, in a plan for an alternative form of regulation, the costs of a nuclear electric generating facility which is:

    a. out of service for maintenance or repairs and not returned to the commercial production of electricity for six months or longer;

    b. anticipated to be out of service for six months or longer, pursuant to notification by the electric public utility in accordance with notification procedures to be developed by the board; or

    c. out of service indefinitely and no longer used and useful in the commercial production of electricity.

 

    2. The board shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate such rules or regulations as are necessary to effectuate the provisions of this act.

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill prohibits the Board of Public Utilities from considering the costs of a nuclear electric generating plant, in determining just and reasonable rates, when the facility is: (1) closed for repairs for six months or longer; (2) anticipated to be closed for repairs for this amount of time; or (3) closed indefinitely and no longer used and useful for the production of electricity.

    In a recent case involving the two reactor units at the Salem generating station, customers of Public Service Electric and Gas Company and Atlantic Electric have been charged for the facility even though Unit 1 has been closed by its operators indefinitely and Unit 2 is not expected to be re-started for many months, if at all.

    This bill is intended to protect the interests of the electric public utility consumers by not requiring them to pay for electric power from a generating facility if they do not receive electric power from the facility.

 

 

                             

 

Prohibits BPU from considering the costs of certain generating plants in determining rates.