"Public Utility Rate Stabilization Act"; permits gas and electric public utilities to employ alternative ratemaking mechanisms.

New Jersey's A6123, the "Public Utility Rate Stabilization Act," allows gas and electric utilities to use alternative rate-setting methods instead of traditional base rate cases. These alternatives include performance-based rates, multi-year rate plans, and earnings-sharing mechanisms, which utilities must petition the Board of Public Utilities (BPU) to approve. The BPU must review petitions within nine months, hold public hearings, and ensure plans meet criteria like fair rates, grid reliability, and alignment with state energy goals. The bill also permits utilities to use future cost projections (fully-projected test years) in rate filings and requires the BPU to adopt rules within 180 days of enactment. This directly affects utilities, customers, and the BPU's oversight process.