Renewed Push In NJ To Jack Up Fines For Utilities During Outages

A bill that would allow the New Jersey Board of Public Utilities (BPU) to jack up fines against utility companies such as JCP&L after severe outages has been on the table since 2012. So why is it “languishing” before Garden State lawmakers without a hearing, a state senator wants to know.

Angered by repeated power outages following recent nor’easters that left tens of thousands of New Jerseyans without electricity for days on end, State Senator Joe Pennacchio (District 26) announced a renewed push this week for S-889, “The Reliability, Preparedness, and Storm Response Act.”

The proposed law would hold utility companies accountable when they fail to provide reliable service during such public emergencies, Pennacchio said. (Read the full bill here)

Pennacchio’s home district – which includes parts of Essex County, Morris County, and Passaic County – was hit especially hard during last week’s storm.

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Pennacchio said that although local utility companies have been “contrite” following large outages, they still haven’t improved in their preparation, reliability or ability to recover quickly when outages occur.

“JCP&L has been responsive to our outreach, but we continually find ourselves in the same situation over and over again,” Pennacchio said. “It’s insane to expect a different result if we’re not willing to demonstrate that we’re serious about holding power companies accountable.”

The bill would hit underperforming companies where it hurts… their wallets.

Currently, if the BPU finds a utility has “failed to implement its service reliability or communications plan,” or finds the utility’s performance to be “less than effective,” it only has the ability to levy a $100 fine against the offender, Pennacchio said.

But S-889 would allow the BPU to increase that fine up to $25,000 per day for each violation, or up to a maximum of $2 million for any series of related event, giving it some serious teeth.

Any collected fines would be earmarked for the BPU to “increase public utilities’ service quality and reliability.”

“The significantly stronger penalties proposed under this legislation will ensure that power companies have a real financial incentive to get people reconnected as quickly as possible,” Pennacchio claimed. “Since utilities would be barred from passing on the cost of penalties to ratepayers, it will impact their bottom lines, providing an additional incentive to get the lights turned back on without delay.”

SO WHY ISN’T IT A LAW YET?

According to Pennacchio, the legislation, first introduced in 2012 - nearly a month before Superstorm Sandy - in response to extended power outages following Hurricane Irene and an October snowstorm in 2011.

The bill was reintroduced at the beginning of each new two-year legislative session in 2014, 2016, and 2018. Each session, it was referred to the Senate Economic Growth Committee, where it “languished without hearing,” Pennacchio said.

“When Sandy resulted in even longer outages, the critical need for this legislation became even more evident,” Pennacchio said. “Our recent week-long outages following this winter’s nor’easters proved the point yet again. After six years of inaction, we can no longer ignore the need to improve the reliability of the electric service that our families are dependent on to be safe and secure in their homes.”

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