New Jersey · Legislation Insight

NJ A5395: The Hidden Electric Bill Charge Hitting All Businesses

A provision in New Jersey's Clean Firm Energy Reliability Act will add a non-bypassable charge to every business electric bill—and you can't opt out.

Most construction and trades owners in New Jersey don't realize that a bill currently in the legislature would create a mandatory charge on their electric bills that they cannot avoid, even if they switch suppliers. That charge would fund nuclear power plant construction and other "clean firm energy" projects approved by the state.

Here's what's actually in the bill.

What A5395 Does

Assembly Bill 5395, titled the "Clean Firm Energy Reliability Act," directs New Jersey's Board of Public Utilities (BPU) to establish a program to procure certain electricity generation facilities in the state. Buried in Section 6 of the bill—which amends the New Jersey Statutes at C.48:3-60, subsection c.—is a provision that creates a non-bypassable charge on electric bills.

In plain terms: every electric utility customer in New Jersey, including small businesses and construction firms, would pay a mandatory line-item charge on their monthly electric bill. This charge would fund construction of nuclear power plants or other approved "clean firm energy" projects. The charge cannot be avoided by switching electric suppliers.

Who Pays and How Much

The charge applies to all electric customers. The amount of the charge and how long you'll pay it are both determined by a BPU order—not by legislation, not by negotiation, and not by market conditions. Once the BPU designates a qualified project, the charge begins no later than 180 days after that designation, or on another date the board specifies.

Because it's non-bypassable, you cannot escape the charge by switching to a competitive electric supplier or by any other means. It's a fixed addition to your bill, separate from your actual electricity usage charges.

Why This Matters to Your Business

For construction firms, HVAC contractors, electricians, plumbers, and other trades, electricity is either a direct operating cost or a cost passed through to clients. A mandatory charge on your electric bill increases your baseline costs. Unlike a rate increase tied to actual usage, which you can manage by reducing consumption, this charge is fixed and unavoidable.

If you operate multiple job sites or a fleet of vehicles charged at commercial locations, the impact multiplies across multiple accounts. And because the charge is set by BPU order rather than statute, there's no legislative cap on the amount or duration.

The Timeline

The charge becomes effective no later than 180 days after the BPU designates a qualified project. That means once a project is approved, the clock starts. There is no public vote, no town hall, and no opt-out period for businesses.

The relevant language appears in Section 6 of A5395, on page 13, amending C.48:3-60, subsection c.

Construction and trades business owners should monitor this bill's status and understand how it could affect their operating costs. A detailed, business-specific breakdown of A5395 and similar energy legislation is available through industry associations and utility watchdog organizations tracking New Jersey energy policy.

Source: Assembly Bill 5395, Section 6, amending N.J.S.A. C.48:3-60, subsection c.

Source: A5395 · Section 6 (amending C.48:3-60, subsection c.), page 13 · Charge begins no later than 180 days after BPU designates a qualified project, or other date specified by the board; eff · Legislative data via LegiScan (CC BY 4.0), read and summarized by RESignal. Awareness, not legal advice — verify at the source.
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