Following the expiration of New Jersey’s utility shutoff moratorium on March 15, Gov. Phil Murphy enacted new protections for residential water, sewer and municipal electric customers.
Under the bill signed into law on March 25, residents with overdue utility bills will have the ability to defer payments while they wait for the state to process their applications for financial assistance.
In a statement, Murphy said, “Over the past two years, we have implemented critical protections for residential utility customers on our state. As New Jersey continues on our road to recovery, we must provide ongoing support to residents who have been financially impacted by the COVID-19 pandemic.”
What Protections Are Included
The bill, whose primary sponsors include State Sen. Brian Stack (D-33) along with Assembly members Raj Mukerji (D-33), and Britnee Timberlake (D-34), establishes a 60-day grace period in which utilities cannot be turned off for residential applicants for utility aid from a state agency.
Under the measure:
- Utility companies cannot shut off customers unless state authorities approve or deny the request for aid.
- Providers are required to offer customers who received a 60-day shutoff delay with a 12-month repayment plan after the grace period ends. However, shutoffs could resume if a resident does not accept the payment plan within 30 days.
- Residents must apply before June 15 to be eligible for the grace period.
- Municipalities are barred from placing a lien on a resident’s property over unpaid water, electric or sewer charges during the 60-day timeframe, as well as while a customer appeals a denied application for financial assistance.
The new law now requires utilities to immediately restore services that were suspended between the end of the freeze on shutoffs and March 25—the bill’s effective date—if a customer applies for aid from the state.
‘A Necessary Step’
After the moratorium lapsed earlier this month, some companies began shutting off utilities, which prompted lawmakers to fast-track a bill that would help keep the lights on and water running for residents behind on payments but still seeking state aid. The legislation was approved March 24 in a 33-0 vote by the Senate and a 72-3 vote by the Assembly.
Timberlake called it “a necessary step to help many people in New Jersey. Between filling out the assistance paperwork and waiting for approval, households may have to wait several months to finally receive the aid they deserve,” she said.
State Sen. Vin Gopal (D-11), another sponsor, said about 850,000 residential gas and electric customers across the state owe more than $660 million, largely due to the effects of the COVID-19 pandemic.
Outreach Efforts Will Continue
“This legislation will give those residents breathing room as their assistance application is sorted out. The law will also give the state Department of Community Affairs the time necessary to properly vet and review applications, and to make determinations accordingly,” he said.
According to Lt. Gov. Sheila Oliver, who serves as commissioner of the New Jersey Department of Community Affairs, the state, as well as the New Jersey Board of Public Utilities and utility companies, will continue outreach efforts “to make sure as many people as possible know about the assistance programs and are able to submit an application prior to June 15.”
“Our hope is that this new law spurs people who need utility assistance to complete an application as soon as possible to avoid a utility shutoff. We significantly expanded income eligibility for assistance programs this year to reach more people, including even moderate-income households,” Oliver added.
