TRENTON, NJ – A measure introduced in the State Assembly seeks to exempt municipal electric utilities from regulation by the New Jersey Board of Public Utilities (BPU), ending the state’s authority to set or review their rates.
Assembly Bill 3393, introduced February 1 by Assemblyman Christian E. Barranco (R-Morris, Passaic) and Assemblyman Gregory P. McGuckin (R-Monmouth, Ocean), would amend existing law to fully remove municipal electric systems from BPU rate and operational oversight.
The bill is co-sponsored by Assemblyman Michael Inganamort (R-Morris, Sussex, Warren).
Local control over rates and operations
Currently, municipal utilities are largely independent, but when they sell electricity beyond their borders, they are treated as public utilities under state law and become subject to BPU regulation — including rate-setting and oversight of debt, property, and service extensions.
Under A3393, municipalities providing electricity to customers outside their boundaries would no longer be classified as public utilities and therefore would not fall under BPU supervision.
The agency would retain jurisdiction only to settle disputes about service territory boundaries between electric cooperatives or municipal systems.
Supporters say bill enhances local autonomy
Proponents of the legislation argue that the change would give municipalities more flexibility in managing their own electric systems without state interference.
They contend that local control allows utilities to respond more directly to community needs and operate more efficiently than under statewide regulation.
Current law and next steps
Under existing statutes, the BPU regulates rates charged by municipalities that sell power outside their corporate limits to ensure prices are fair and consistent with state utility standards.
If enacted, the new law would take effect on the first day of the third month following its passage.
Assembly Bill 3393 would remove BPU rate regulation of municipal electric utilities, giving local governments full control over their power operations.