NJBPU: Optimum Billing Settlement in New Jersey Mandates Refunds & Free Broadband

• The New Jersey Board of Public Utilities approved a settlement on September 11, 2026, with Optimum Communications over improper final billing practices.
• The agreement resolves eight years of litigation stemming from Optimum's failure to prorate cable television bills for customers who disconnected service.
• Affected customers from December 18, 2018, to May 5, 2023, will each receive a $37 refund.
• Optimum is also required to expand its low-income broadband program statewide and provide six months of free service to eligible participants over two years.
• The settlement includes heightened reporting requirements to ensure Optimum's ongoing compliance with NJBPU customer service regulations.

The New Jersey Board of Public Utilities has underscored its commitment to consumer protection by securing a comprehensive settlement with Optimum Communications, addressing years of improper billing practices.

The New Jersey Board of Public Utilities (NJBPU) recently announced the approval of a significant settlement with Optimum Communications, formerly known as Altice USA, concluding an eight-year legal dispute. This agreement, finalized at the Board's Wednesday Agenda meeting on September 11, 2026, addresses Optimum's long-standing failure to properly prorate final bills for cable television customers who had disconnected their service, a direct violation of established Board regulations.

Under the terms of this resolution, the NJBPU has secured tangible benefits for affected New Jersey residents. Each customer impacted by Optimum's non-compliance between December 18, 2018, and May 5, 2023, will receive a refund of $37. Beyond financial restitution, the settlement also mandates that Optimum expand its low-income broadband program to encompass its entire customer base across the state, eliminating the need for income verification. Furthermore, customers participating in this expanded low-income program will be granted six months of complimentary service, distributed over a two-year period.

To prevent similar issues in the future, the stipulation includes enhanced reporting requirements for Optimum. These measures are designed to ensure the company's ongoing adherence to the NJBPU's customer service regulations, reinforcing the Board's commitment to consumer protection.

The core of the dispute centered on a fundamental NJBPU rule stipulating that cable television bills must be prorated whenever a customer initiates or terminates service. This regulation ensures that consumers are only charged for the exact days they receive service, preventing them from paying for periods after cancellation. Optimum's consistent failure to uphold this standard triggered the lengthy legal battle.

The issue first came to light in 2018, when the NJBPU received over 100 complaints from customers alleging that Optimum continued to charge them for cable services even after they had officially canceled. In response to these reports, the Board issued an Order to Show Cause in December 2018. When Optimum failed to rectify the practice, the NJBPU escalated its enforcement, issuing a Cease-and-Desist Order in 2019, which explicitly required the company to halt the improper billing and issue refunds.

Optimum subsequently challenged the Board's authority in court. However, in 2023, both the New Jersey Supreme Court and the Appellate Division affirmed the NJBPU's right to enforce prorated billing rules, directing Optimum to comply. This judicial backing paved the way for the negotiated settlement, which was ultimately deemed a fair and reasonable resolution by the NJBPU, following negotiations involving Board staff, the New Jersey Division of Rate Counsel, and Optimum.

NJBPU President Ben Hertz-Shargel emphasized the significance of the settlement, stating that it holds Optimum accountable and provides restitution to customers who were improperly charged. He further noted that the agreement expands access to affordable broadband and establishes clearer oversight mechanisms moving forward. The Board's primary objective is to safeguard ratepayers, and this settlement is expected to ensure Optimum's full compliance with state regulations.

The New Jersey Board of Public Utilities functions as a state agency with comprehensive regulatory authority over various utilities, including natural gas, electricity, water, telecommunications, and cable television providers. Its mandate extends to ensuring that New Jersey customers receive safe, adequate, and proper utility services at reasonable rates. This includes actively monitoring service quality, addressing consumer complaints, and investigating utility-related incidents.

This outcome underscores the NJBPU's robust role in enforcing consumer protection rules within the utility sector. The heightened reporting requirements imposed on Optimum serve as a clear signal to all regulated entities about the Board's increased scrutiny on customer service practices and its commitment to upholding regulatory standards.

This settlement reinforces the NJBPU's authority to enforce prorated billing rules for utilities in New Jersey, signaling increased scrutiny on customer service regulations. Compliance officers and legal counsel for telecommunications and utility providers in the state should review their final billing practices and reporting mechanisms to ensure strict adherence to Board rules and avoid potential enforcement actions.

Source: Original reporting via NJBPU press release