N.J. Admin. Code § 14:3-7.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 14:3-7.5 - Budget billing plans for residential accounts

(a) This section applies only to gas, electric, water and wastewater utilities. It does not apply to telecommunications utilities.

(b) Each gas, electric, water and wastewater utility, which does not bill on a flat rate basis shall file with the Board as part of its tariff, and have available to the public on request, a budget billing plan program description for residential accounts. The budget billing plan program shall allow a customer to pay a predetermined monthly rate for a set time period (known as the budget plan year), based on the customer's average usage. At the end of the budget plan year, the public utility shall "true up" the customer's account, in accordance with (g) below, and will adjust the customer's charges to reflect the actual usage over the budget plan year.

(c) The budget billing plan required by this section shall be optional, except the utility shall ensure that residential electric or gas customers who apply for and are eligible for the Winter Termination Program under 14:3-3A.5 participate in a budget billing plan.

(d) The projected monthly budget amount that a customer owes under a budget billing plan shall be determined by the following factors:

1. Monthly usage on the customer's account for the past season;

2. Actual weather conditions encountered during the past season, adjusted to normal year;

3. Base rate increases and levelized energy or levelized gas adjustment charges actually granted by the Board; and

4. Projected changes in the levelized energy or levelized gas adjustment charges.

(e) The utility shall offer all customers the same budget plan year, which will last 10, 11 or 12 months, except that the budget plan year for all residential electric or gas customers who seek the protection of the Winter Termination Program shall be 12 months.

(f) If a customer is a new customer with little or no prior history of utility use, the monthly budget amount shall be determined using a reasonable estimate of likely usage.

(g) For each customer on a budget billing plan, the utility shall "true up," or compare the actual cost of service rendered, as determined by actual meter readings, and the monthly budget amount as follows:

1. The comparison shall be made at the beginning of the budget plan year, and at least once during the budget plan year;

2. The comparison shall take into account the customer's usage and any rate increases or decreases that have been granted by the Board, including increases or decreases in the levelized energy or levelized gas adjustment charges;

3. If a comparison performed during a customer's budget plan year reveals an increase or decrease of 25 percent or more in the monthly budget amount, the monthly budget amount shall be adjusted for the balance of the budget plan year to minimize the adjustment required at the end of the budget plan year. There shall be no more than one such adjustment during the budget plan year;

4. A final bill for a budget plan year shall be issued at the end of the budget plan year and shall contain that month's monthly budget amount plus an adjustment of any difference between said amount and the actual cost of the service rendered during the budget plan year; and

5. A utility shall notify budget billing plan customers in writing of a revised monthly budget amount at least 10 working days before the due date of the initial bill of the next budget plan year.

(h) The budget billing plan shall be offered by a bill insert or bill message to eligible customers at least twice in each 12-month period.

(i) The budget billing plan bill shall contain the information required by 14:3-7.2, Form of bill for metered service, 14:3-7.3 Form of bill for unmetered service and 14:3-7.4 Method of billing. In addition, the budget billing plan bill shall show the monthly budget amount, budget balance and, when feasible, the budget billing to date and the actual cost of service rendered billing to date.

(j) Except for Winter Termination Program customers, a customer may go off a budget billing plan at any time, in which event the customer shall pay the amount owed for service rendered or, in the alternative, agree to a stipulated payment agreement according to 14:3-7.6.

(k) Any change in a utility's budget billing plan program, including a change in the time frame for its budget plan year, shall be filed and approved by the Board through a tariff amendment prior to its implementation.

N.J. Admin. Code § 14:3-7.5

R.1983 d.651, eff. 2/6/1984.
See: 15 N.J.R. 1235(a), 16 N.J.R. 250(a), 16 N.J.R. 1807(b).
Section expires on February 6, 1989.
Amended by R.1997 d.39, effective 2/3/1997.
See: 28 N.J.R. 1810(a), 29 N.J.R. 449(a).
In (a), amended characteristics of budget billing and payment plan.
Amended by R.2002 d.280, effective 9/16/2002.
See: 34 N.J.R. 992(a), 34 N.J.R. 3216(a).
In (a), rewrote the introductory paragraph.
Recodified from N.J.A.C. 14:3-7.11A and amended by R.2008 d.119, effective 5/19/2008.
See: 39 N.J.R. 4077(b), 40 N.J.R. 2481(a).
Section was "Requirement for budget billing and payment plans of gas, electric, water and wastewater utilities for residential accounts". Added new (a); recodified former introductory paragraph of (a) as (b); recodified former (a)1 through (a)8 as (c) through (j); recodified former (a)2i and (a)2ii as (d)1 and (d)2; recodified former (a)5i through (a)5v as (g)1 through (g)5; deleted former (b) and (c); rewrote (b) through (e); in (f), inserted "history of utility" and substituted "using" for "by"; in the introductory paragraph of (g), substituted "For each customer on a budget billing plan, the utility shall 'true up' or compare" for "A comparison shall be made between"; rewrote (g)1; in (g)2, substituted "the customer's usage" for "consumption"; rewrote (g)3; in (g)5 and (h), inserted "budget billing"; in (i), inserted "budget billing" twice, updated the N.J.A.C. references and deleted the parenthesis surrounding "Form of bill for metered service", "Form of bill for unmetered service" and "Method of billing"; in (j), substituted "Except for Winter Termination Program customers, a" for "A", inserted "budget billing" and updated the N.J.A.C. reference; and added (k).
Former N.J.A.C. 14:3-7.5, Return of deposits, was repealed.