New Jersey § 48:2-21

§ 48:2-21.

a. An electric public utility that enters into an off-tariff rate agreement pursuant

to section 3 of P.L.1995, c. 180 ( C.48:2-21.26 ) shall not recover through rates any revenue erosion that occurs between the effective

date of the agreement and the conclusion of the public utility's next base rate case. b. As part of a base rate case proceeding, an electric public utility may request

prospective recovery of a portion of the quantifiable revenue erosion resulting from

an existing off-tariff rate agreement with a customer that previously purchased power

from the utility under a tariff set by the board. Whenever a public utility requests partial recovery of revenue erosion from an off-tariff

rate agreement, and notwithstanding any provision of subsection c. of section 3 of P.L.1995, c. 180 ( C.48:2-21.26 ) to the contrary, the entire agreement shall be available to the public, except that

a public utility may petition the board to keep confidential certain parts of the

agreement or supporting documentation that are competitively sensitive. Upon petition by the public utility, and after an opportunity for all interested

parties to comment, the board may classify as confidential any part of the agreement

that is found to contain competitively sensitive information that, if revealed, would

harm the competitive position of either party to the agreement. An intervenor in the base rate case proceeding may request access to information

that has been classified as confidential. The board shall grant such access, subject to an executed non-disclosure agreement,

if the board determines that the intervenor's interest cannot be pursued fully in

the base rate case proceeding without access to the information and that the intervenor

is not a direct competitor of either party to the agreement. c. In a base rate case proceeding at which an electric public utility requests, pursuant

to subsection b. of this section, prospective recovery of revenue erosion, the board

may approve prospective recovery of 50 percent of the revenue erosion occurring after

the conclusion of that base rate case proceeding, in order to ensure that ratepayers

shall not bear a greater portion of the revenue erosion resulting from the off-tariff

rate agreement than the public utility, if the board determines that: (1) All appropriate offsetting financial adjustments, including but not limited to

sales growth, standby and backup sales to the customer, are credited to the revenue requirement calculation and that the utility is not already

achieving a fair and reasonable rate of return; (2) The utility has developed and implemented a corporate strategy to lower its cost

of delivering power; (3) Ratepayers are paying lower rates with the implementation of an off-tariff rate

agreement for a particular customer than without such implementation, because the

off-tariff rate agreement allowed the utility to continue to maintain the customer

and thus to continue to receive the customer's contribution to the fixed transmission

and distribution costs of the electric public utility. A determination that the public utility's ratepayers are paying lower rates with the implementation of an off-tariff rate agreement prior to the effective date

of P.L.1999, c. 23 ( C.48:3-49 et al.) will therefore include a finding that the customer receiving the off-tariff rate: (a) Had a viable alternative source of power deliverable to its site and, had it not

received the off-tariff rate, would have ceased to obtain its power primarily from

the public utility; or (b) Would have relocated its facility outside of the State to a location where power

could be obtained at a lower cost, had it not received the off-tariff rate. A determination that the public utility's ratepayers are paying lower rates with the

implementation of an off-tariff rate agreement on or after the effective date of P.L.1999, c. 23 ( C.48:3-49 et al.) will therefore include a finding that the customer receiving the off-tariff

rate would have relocated its facility outside of the State to a location where it

could have obtained delivered power at a lower cost, had it not received the off-tariff

rate; and (4) The utility and the customer have otherwise complied with the provisions of P.L.1995, c. 180 ( C.48:2-21.24 et seq. ) and the off-tariff rate standards adopted by the board pursuant to subsection a.

of section 3 of P.L.1995, c. 180 ( C.48:2-21.26 ) .