S 4166 — Requires customer consent to material changes to third-party energy supply contracts under certain circumstances.*

S4166 1R [First Reprint] SENATE, No.

Senator  TROY SINGLETON District 7 (Burlington)         SYNOPSIS      Requires customer consent to material changes to third-party energy supply contracts.contracts under certain circumstances.

  CURRENT VERSION OF TEXT      As introduced.reported by the Senate Economic Growth Committee on June 8, 2026, with amendments.

       1.    a. a. As used in this section:       “Material change” means a change to the terms or duration of a third-party energy supply contract, including, but not limited to, a change in price or a change to or from fixed or variable pricing.

    As “Third-partyused energy supply contract” means a contract for electric generation service or gas supply service in thethis State,section: as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51), entered into by an electric power supplier or a gas supplier, as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51), and a residential customer of that supplier.

     b.   “Material Anychange” materialmeans a change to athe third-partyterms energy supply contract that was entered into or renewedduration after the effective date of P.L.    ,a c.   third-party (C.        )energy (pendingsupply beforecontract, theincluding, Legislaturebut asnot thislimited bill)to, shalla requirechange thein expressprice verbal, electronic, or writtena consentchange ofto theor residentialfrom customer,fixed which express consent shall be maintained by the electric power supplier or gasvariable supplierpricing. in a verifiable format.

     c.    1“Supplier” Themeans Boardan ofelectric Publicpower Utilitiessupplier shall,or gas supplier, as those terms are defined in accordancesection with3 of P.L.1999, c.23 (C.48:3-51).1      “Third-party energy supply contract” means a contract for electric generation service or gas supply service in the “AdministrativeState, Procedureas Act,”those P.L.1968,terms c.410are (C.52:14B-1defined etin seq.),section adopt3 rulesof andP.L.1999, regulationsc.23 (C.48:3-51), entered into by 1[an electric power supplier or a gas supplier, as necessarythose toterms implementare thisdefined section.in section 3 of P.L.1999, c.23 (C.48:3-51),] a supplier1 and a residential customer of that supplier.

     b.    Any material change to a third-party energy supply contract 1[that was]1 entered into or renewed after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall require the express verbal, electronic, or written consent of the residential customer, which express consent shall be maintained by the 1[electric power supplier or gas]1 supplier in a verifiable format.

     c.     1Notwithstanding the provisions of subsection b.

of this section, a supplier may renew or extend a third-party energy supply contract without obtaining the express consent of the residential customer if the renewal or extension:

     (1)   does not convert a fixed-price product to a variable-price product;

     (2)   does not convert a third-party energy supply contract with a defined term length to a month-to-month or automatically renewing variable-rate contract;

     (3)   does not increase the contract price by more than 20 percent above the price in effect during the final billing cycle of the existing third-party energy supply contract;

and      (4)   permits the residential customer to cancel the renewed or extended third-party energy supply contract and select another product, another supplier, or basic generation service within 60 days following the effective date of the renewal or extension without any cancellation fee, early termination fee, administrative charge, or other financial penalty.

     d.    Prior to renewing or extending a third-party energy supply contract pursuant to subsection c.

of this section, a supplier shall provide two written notices to the residential customer, by mail or electronic notification, in accordance with the preferred method of contact for the residential customer.

 The first notice shall be provided no earlier than 60 days before the effective date of the renewal or extension.  The second notice shall be provided no more than 60 days but no less than 30 days before the effective date of the renewal or extension.  Each notice provided pursuant to this subsection shall clearly disclose:

     (1)   the current price;

     (2)   the proposed renewal or extension price;

     (3)   the percentage difference between the two prices;

     (4)   the residential customer's right to select another product offered by the supplier, enroll with another supplier, or return to basic generation service;

and      (5) the procedure for declining the renewal or extension.

     e.1  The Board of Public Utilities shall, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this section.

    STATEMENT        This bill requires the express verbal, electronic, or written consent of a residential customer for any material change to the customer’s third-party energy supply contract for electric generation service or gas supply service in the State with an electric power supplier or a gas supplier, as appropriate.  Under the bill, “material change” means a change to the terms or duration of any third-party energy supply contract, including, but not limited to, a change in price or a change to or from fixed or variable pricing.