Lawmakers Propose “Energy BillWatch” to Help NJ Consumers Avoid Surprise Utility Bills

Senator John Burzichelli, Assemblywoman Heather Simmons, and Assemblyman David Bailey want utility companies to adopt a user-friendly energy notification program that alerts consumers of their energy use so they can avoid unexpected and expensive electric and gas bills.

Entitled “Energy BillWatch,” their proposed program would automatically inform customers of their energy use at regular, early intervals so they can manage consumption to accommodate their needs.

New Jersey residents have been hit with a spike in energy costs this summer, with some South Jersey residents seeing monthly electric bills more than double. The increases are the result of greater demand and usage, according to energy regulators.

“This would be a proactive, user-friendly program that alerts consumers of their energy use so they aren’t caught by surprise with exorbitant bills at the end of the month,” said Senator Burzichelli (D-Gloucester/Salem/Cumberland). “It would provide real-time information that allows customers to manage their energy consumption and control costs.”

The program would require utility companies to directly notify customers by phone, email, or text message 10 days into the billing cycle if their energy usage is exceeding their monthly average, with another notification at 20 days. It would allow customers to set their own threshold for the alerts based on dollar amounts, rather than just kilowatt usage.

The requirement would apply to electric and gas companies that use smart meters.

“The utility companies should be taking advantage of new technologies in ways that help consumers,” said Assemblywoman Simmons (D-Gloucester/Salem/Cumberland). “This plan will provide the information that customers need in ways that are easy to use.”

Energy BillWatch would be an “opt-out” program, meaning customers would be automatically enrolled unless they choose not to participate. The companies would have to inform customers of the program and advertise its availability through billing, social media, and emails.

The process would be much more user-friendly than even the “opt-in” services that some companies offer because they can be cumbersome and even unknown to many customers, the legislators said.

“The sticker shock of large utility bills at the end of the month can be unaffordable for working families who struggle to manage household finances,” said Assemblyman Bailey (D-Gloucester/Salem/Cumberland). “The early notifications will give them the ability to adjust their usage and prevent surprise bills that break their budgets.”

Residential power usage during the recent summer months increased by 20 percent compared to last year, fueled by hotter weather. New Jersey has endured the second-hottest June on record, the seventh-hottest July and could experience one of the warmest summers in 15 years. Adding to the demand is greater use of electronic devices, including air conditioners, computers, and incandescent lights.

The Third District legislators said they will introduce legislation to put the plan in place at the next legislative quorums.