Legislation introduced by Assemblyman Avi Schnall (D-30) passed the Assembly Telecommunications and Utilities Committee in a 5-1 vote. The bill targets the unchecked profit margins of electric utility companies, which rake in billions in profit while passing the burden of infrastructure upgrades directly onto consumers.

Under current law, electric utility providers are allowed to invest in infrastructure improvements and then recoup those costs — plus profit — through rate hikes approved by the New Jersey Board of Public Utilities (BPU). However, there is no defined mechanism in place to cap those profit margins, even as customers shoulder ever-increasing bills.

“New Jersey residents are not ATM machines,” said Assemblyman Schnall. “With electricity rates set to spike again in June, we must act decisively to curb runaway costs and put consumers first — not corporate profits.”

Assemblyman Schnall’s legislation, A-5436, would require the BPU to determine the lowest reasonable profit margin for utility companies and cap customer rate increases accordingly. This ensures that utility providers can continue to modernize and maintain infrastructure without generating excessive profit at the public’s expense.

“Utility companies are posting billions in annual profit, while too many families are forced to choose between paying the electric bill or putting food on the table,” Schnall added. “This legislation strikes a balance: it safeguards critical infrastructure investment while putting an end to unchecked profiteering.”