S 4166 New Jersey Senate · 2026-2027 Regular Session

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

This bill requires residential customers in New Jersey to give explicit consent before their third-party energy supply contracts undergo significant changes. It defines a material change as any modification to the contract's terms or duration, such as a price adjustment or a switch between fixed and variable rates. Energy suppliers must obtain this verbal, electronic, or written agreement and keep a verifiable record of it for any contract entered into or renewed after the law takes effect. Additionally, the state's Board of Public Utilities will be tasked with creating specific rules to ensure this new consent process is properly implemented.

Issues: ✓ Energy

Bill status passed 3 of 5 stages cleared

Introduction

May 2026

Committee Review

Jun 2026

Senate Passage

Jun 2026

General Assembly Passage

Governor

Introduced May 11, 2026 Last action Jun 30, 2026

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What changed between versions

Introduced → Reprint · 5 edits

MODERATE

The bill was amended by the Senate Economic Growth Committee to create a significant exception to the customer consent requirement. Originally, any material change to a third-party energy supply contract required express customer consent. The amended version allows suppliers to renew or extend contracts without consent if four protective conditions are met: no conversion from fixed to variable pricing, no conversion to month-to-month or auto-renewing variable-rate terms, no price increase above 20 percent of the final billing cycle price, and a 60-day free cancellation window. A new two-notice requirement was also added for these consent-free renewals.

Scope change

The bill's scope narrowed from a blanket consent requirement for all material changes to third-party energy supply contracts to a consent requirement with a specific exception for renewals and extensions that meet four protective conditions (price cap, no adverse product conversion, and free cancellation window).

ELIGIBILITY

New subsection c. creates an exception allowing suppliers to renew or extend contracts without express customer consent if: (1) no fixed-to-variable conversion, (2) no defined-term to month-to-month/auto-renewing variable-rate conversion, (3) price increase does not exceed 20 percent above the final billing cycle price, and (4) the customer can cancel within 60 days without any fee or penalty.

REQUIREMENT

New subsection d. requires suppliers to provide two written notices (by mail or electronic notification) before a consent-free renewal or extension: a first notice no earlier than 60 days before the effective date, and a second notice between 30 and 60 days before. Each notice must disclose the current price, proposed price, percentage difference, the customer's right to switch products or suppliers, and the procedure for declining.

DEFINITION

A new standalone definition of 'Supplier' was added, meaning an electric power supplier or gas supplier as defined in section 3 of P.L.1999, c.23 (C.48:3-51). This simplifies references throughout the bill.

SCOPE

The synopsis was changed from requiring consent for all material changes to requiring consent 'under certain circumstances,' reflecting the new exception for qualifying renewals and extensions.

TECHNICAL

The explanatory statement section at the end of the bill was removed in the reprint version, which is standard legislative formatting.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Committee

Received in the Assembly, Referred to Assembly Telecommunications and Utilities Committee

lower

Jun 30, 2026

Upper · Passed

Passed by the Senate (40-0)

upper

May 11, 2026

Introduced

Introduced in the Senate, Referred to Senate Economic Growth Committee

upper

1 primary · 0 co-sponsors