Supreme Court of New Jersey

City of Plainfield, Plaintiff-Respondent v. Public Service Electric and Gas Company, Defendant-Appellant

June 5, 198082 N.J. 245

Summary

The Supreme Court of New Jersey held that the 1898 contract obligating Public Service Electric & Gas Company to provide free electric lighting to municipal buildings is invalid because it violates the Public Utility Act's prohibition on unjust and discriminatory rates. The Court also rejected the applicability of res judicata and the municipal contract‑clause defense, and affirmed the utility's right to charge appropriate rates for the service.