N.J. Supreme Court Says Prorating Rule Isn't Rate Regulation
New Jersey prorating rules are allowed under the federal Cable Act, the New Jersey Supreme Court ruled Monday. No justices opposed the opinion by Justice Douglas Fasciale to reinstate the state Board of Public Utilities' cease-and-desist order against Altice for failing to prorate canceled bills.
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"The regulation does not set the ‘rate’ that companies can charge,” wrote Fasciale. “It simply protects cable users from paying for service they no longer want.” The court remanded to the appellate court to resolve Altice's argument that the board failed to follow proper procedures in its enforcement action.
The BPU and Division of Rate Counsel had appealed a 2021 state Appellate Division decision that the federal Cable Act preempts the state prorating rule. At a January oral argument, New Jersey Supreme Court justices challenged Altice on its claim that a state requirement to prorate cable bills is impermissible rate regulation.
Chief Justice Stuart Rabner and Justices Anne Patterson, Fabiana Pierre-Louis and Rachel Wainer Apter joined Fasciale’s opinion. Justice Lee Solomon and temporarily assigned Judge Jack Sabatino recused themselves from the case. Altice didn't immediately comment.