With massive electric rate hikes less than three months away, a New Jersey senator is pushing his idea to help people pay their bills.

Unlike regular businesses, utility companies are government-regulated monopolies. Their rates are set and approved by the Board of Public Utilities.

But state Sen. Troy Singleton, D-Burlington, says sometimes they charge too much. And the lack of competition means customers can't go to another utility for cheaper prices.

Singleton says his bill, the Public Utility Fair Profit Act (S4260/A5438), addresses that problem.

Under the bill, utilities would be required to conduct annual financial reviews and compare their revenues against revenue requirements set by the BPU.

Any excessive profits would be given back to ratepayers directly.

"What we're attempting to do is create a scenario that if the utility company makes too much extra money, they have to give it back to customers. They have to be more transparent about how they set their prices so people understand what they're paying for," Singleton said.

The lawmaker says the BPU would determine how those payments are made, whether that means a check in the mail or credits toward future monthly bills.

Other plans from lawmakers to lower electricity costs

One big question on New Jersey residents' minds is whether they'll be able to afford a coming rate hike.

Starting on June 1, customers with the four biggest electric utilities in the state will see their monthly bills go up between 17% and 20%. Utilty companies said they won't see a dime from the increase.

Gov. Murphy and the Board of Public Utilities have blamed the electric grid company PJM Interconnection, claiming PJM had failed to increase the supply of electricity to meet demand.

Amid the blame game, other proposals have been made to lower monthly bills ahead of the June spike. But none have been passed in the legislature or implemented by Murphy.

Original Article