40:62-24 - Municipality serving others deemed public utility; control by board of public utilities; rate structure - New Jersey Statutes

40:62-24.  Municipality serving others deemed public utility;  control by board of public utilities;  rate structure    Every municipality in supplying electricity, gas, steam or other product beyond its corporate limits is hereby declared to be a public utility.  The Board of Public Utilities shall have the same supervision and regulation of, and jurisdiction and control over such municipality in respect to its acts in supplying electricity, gas, steam or other product beyond its corporate limits,  and of and over the property, property rights, equipment, facilities and  franchises used in supplying electricity, gas, steam or other product beyond  its corporate limits as over other public utilities. Every such municipality  shall be subject as to its service, accounts, property rights, equipment,  franchises, extensions, reports, issuance of bonds or other indebtedness  maturing in more than 1 year from the date thereof, to the jurisdiction of the  Board of Public Utilities to the same extent as other public utilities.

    Every municipality supplying electricity, gas, steam or other product beyond  its corporate limits shall have the rates for these utilities subject to the  jurisdiction of the Board of Public Utilities.  The board in regulating these  rates shall provide for a rate structure which allows the municipality, within  the limits of any covenants made with bondholders pursuant to law, to:

    a.  Recoup all costs of operation, including but not limited to the costs of  raw materials, administration, equipment, buildings, property, maintenance,  taxes, debt service, fees and offsetting any budget deficit occurring in the  immediately preceding fiscal year;

    b.  Establish a surplus sufficient to provide for the reasonable anticipation of contingencies which may affect the operation of the utility and  for an amount which may be transferred from the accounts of the municipal utility and included in the local budget pursuant to section 5 of this amendatory and supplementary act.

     Amended by L.1983, c. 111, s. 2, eff. March 16, 1983.