Board of Public Utilities
The
Board of Public Utilities is a regulatory authority with a statutory mandate to
ensure safe, adequate, and proper utility services at reasonable rates for
customers in New Jersey. Accordingly, the NJBPU regulates critical services
such as natural gas, electricity, water and telecommunications and cable
television. The Board addresses issues of consumer protection, energy reform,
deregulation of energy and telecommunications services and the restructuring of
utility rates to encourage energy conservation and competitive pricing in the
industry. The Board also has responsibility for monitoring utility service and
responding to consumer complaints. For
more information see: http://www.bpu.state.nj.us/home/home.shtml
Smart Growth Main Extension Rules
On November 16, 2004 the BPU adopted the Main Extension Regulations at N.J.A.C. 14:3-1; 14:3-6; 14:3-8; 14:3-10. The adoption of these rules was intended to replace various existing rules governing extensions of service with one consolidated, comprehensive set of new extension rules that support the State’s smart growth policies. The rules address whether and how a regulated entity may contribute financially to an extension made in response to an application of service. The adoption of the N.J.A.C. 14:3-1; 14:3-6; 14:3-8; 14:3-10 was also intended to fulfill the Board’s mandate at N.J.S.A. 48:2-23 to ensure regulated entity service be safe, adequate and proper, and furnished in a manner that tends to conserve and preserve the quality of the environment.
The Smart Growth Locator tool can be use to help make a determination about whether an extension will be in an Area Designated for Growth or not.
Who pays for an
extension?
How much a regulated entity is authorized to pay for or financially contribute to an extension depends upon the location of the customers that the extension will serve. If they are located in an area designated for growth, generally the rules provide that a customer will put up a deposit to build the extension. Under the new rules, the utility will return this deposit faster than before. In an area not designated growth, generally, customers will be responsible for paying the entire cost of the extension. Since the area designations are critically important in calculating the cost of an extension it is appropriate to first consider the area designations. This table will help outline the various area categories used by the New Smart Growth Extension Rules.
|
Area Designation |
Physical Area |
|
Area
Designated For Growth |
1. Planning Area 1 (Metropolitan); 2. Planning Area 2 (Suburban); 3. A designated center; 4. An area identified for growth as a result of either an initial or advanced petition for plan endorsement that has been approved by the State Planning Commission; 5. A smart growth area and planning area designated by the New Jersey Meadowlands Commission; 6.
A Pinelands Regional Growth Area, Pinelands Village or Pinelands Town, as
designated in the Comprehensive Management Plan. |
|
Area
Not Designated for Growth |
Areas other than those listed as areas designated for growth. |
For record keeping purposes, a regulated entity may want to print out a screen-shot of the Smart Growth Locator to document whether the property is in a designated growth area or not.
Added Incentives
In addition to the general provisions described above, there are two special incentive programs available in municipalities that have endorsed plans from the State Planning Commission. The first is called the Smart Growth Infrastructure Investment Program (SGIIP). Under the SGIIP, applicants for service in areas with plan endorsement will receive a refund of any deposits to establish service twice as fast as in other areas designated for growth. Also, SGIIP can cover relocations, upgrades and expansions of utility service in addition to extensions. The second is called the Targeted Revitalization Incentive Program (TRIP) and it is designed to remove infrastructure-related barriers to development in certain areas designated for growth. Under the TRIP, the BPU may authorize utilities to charge customers for the costs of installing certain infrastructure in order to build the necessary capacity to serve planned and prospective development in municipalities with plan endorsement. More information about the plan endorsement process can be found at: http://www.state.nj.us/dca/osg/plan/endorsement.shtml.
For a copy of the rules, see the New Jersey Register dated December 20, 2004 or on line at: http://www.bpu.state.nj.us/wwwroot/secretary/SmartGrowthMainExtensionRules.pdf. You can also contact the Board of Public Utilities:
Smart Growth Policy Advisor
New Jersey Board of Public Utilities
Two Gateway Center
8th Floor
Newark, NJ 07102
phone:
973-648-2101
fax:
973-648-4195 email: Eric.Wilkinson@bpu.state.nj.us