Requires BPU to determine and consider lowest reasonable return on equity before approving electric, gas, and water public utility base rate cases.

This bill requires New Jersey's Board of Public Utilities (BPU) to determine and consider the lowest reasonable return on equity (ROE) when reviewing requests from electric, gas, and water utilities for rate increases. It directly affects these public utilities, as they must now justify rate changes based on the lowest reasonable ROE rather than higher profit margins. The BPU must develop or adopt analytic models reflecting state, federal, and industry standards to calculate this lowest reasonable ROE. The policy change applies to all future rate cases filed with the BPU after the law takes effect, ensuring rate adjustments are evaluated with this specific financial standard.