The Division of Rate Counsel urged state lawmakers on March 28 to take near‑term and structural steps to prevent a summer affordability crisis after wholesale capacity prices rose sharply.

Immediate needs

Brian Lipman, director of the Division of Rate Counsel, told the committee that many households are in “energy poverty” and cannot absorb steep bill increases. Lipman recommended targeted, near‑term bill credits for low‑ and moderate‑income households and a focused effort to increase enrollment in the Universal Service Fund (currently reaching only a fraction of eligible households, per testimony).

Medium‑ and long‑term recommendations

- Lower or reallocate the Societal Benefits Charge (SBC) and review unspent balances for near‑term relief; use SBC reductions to soften immediate bill impacts.
- Strengthen oversight of utility capital programs and returns: review infrastructure‑investment programs and consider reducing utilities’ return on equity where appropriate. Rate Counsel said New Jersey’s ROE has fallen from historical highs but that settlements and IIPs (infrastructure investment programs) can accelerate recovery and raise costs for customers.
- Expand enrollment and outreach for the Universal Service Fund and other assistance programs; require utilities to meet enrollment targets, as Sidovi described the BPU’s straw proposal.

Why it matters

Lipman emphasized that unaffordable bills have public‑health and economic consequences and that a mix of immediate credits and structural procurement and rate reforms is needed. He recommended legislative authority for specific program oversight and urged BPU to publish transparent spending and program outcomes.