Prohibits public utilities from recovering cost of legal penalties.

This bill prohibits New Jersey public utilities from including the cost of legal penalties in rates charged to customers. It directly affects utilities and their ratepayers by preventing the Board of Public Utilities from approving rate increases to cover payments made for legal wrongdoing (such as fines or settlements) by the utility or its affiliates. The bill defines "legal penalties" as any payment for improper actions by the utility or its affiliates, and explicitly bars these costs from being recovered through customer rates. The law takes effect immediately upon passage.