NJ Officials Seek Delay In Planned Electric Rate Hikes

NEW JERSEY — The state Board of Public Utilities last week said it will require New Jersey’s four electric utility companies to come up with plans to defer massive rate spikes expected to begin in June, prompting outrage from some lawmakers who called the move "a smokescreen" to delay voter anger until after the November election.

On April 23, the BPU instructed Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy to file petitions to help lower electric costs for Garden State residents.

The petitions must include proposals on how the companies will mitigate overall bill impacts to residential customers during high-usage summer months. The BPU also wants the companies to defer rate increases until later in the year during lower-usage months.

The petitions must be filed by May 5, according to the BPU.

“Despite big-picture concerns with the electricity market, my Administration is focused on immediate solutions to the PJM cost crisis and doing everything in our power to offer relief to families and businesses, including working with our (electric distribution) partners to provide plans to ease costs,” Gov. Phil Murphy said in a statement.

In February, the BPU announced that electricity costs would increase again this year for most New Jersey residents and small businesses. All four electric companies said they expected rates to increase between 17.2 and 20.2 percent as of June 1.

Brian Lipman, director of the New Jersey Rate Council, said the average customer will see their bill increase by more than $20 every month. The price increase will "have a substantial impact on New Jersey families and businesses, especially those least able to afford it," he said.

The increase came following the results of New Jersey's annual Basic Generation Service (BGS) auction, which sets the price companies pay for electricity generated outside the state.

Previously, the BPU pointed to rising demand and a stressed power grid as reasons for the cost increase.

PJM Interconnection operates the power grid used by New Jersey and 12 other states, along with the District of Columbia, and BPU president Christine Guhl-Sadovy said it needs to speed up the process of connecting more electric generation projects to the grid.

"The Murphy Administration will continue to aggressively push and hold PJM accountable to address rising costs by expediting interconnection and implementing additional market reforms, all of which will help drive down costs for ratepayers, which is a priority for the BPU," she said.

The state has already taken several steps to help drive down electric costs for consumers.

Last year, New Jersey’s energy assistance programs provided approximately $295 million in assistance to more than 455,000 families, officials said. Additionally, the BPU unveiled the Residential Energy Assistance Payment (REAP) initiative, which disbursed over $48.7 million via a one-time $175 bill credit for over 278,000 qualifying households.

Last week, the BPU approved a second REAP payment for consumers through the Fiscal Year 2025 New Jersey Clean Energy Fund true-up budget.

Meanwhile, Republicans argue that the Murphy administration is using the BPU to delay voter anger over rising rates until after the November election.

In an interview with the Cape May County Herald, state Sen. Michael Testa blasted the move as "dishonest" and "irresponsible." Sen. Anthony Bucco also called the request "a smokescreen," according to a NJ 101.5 report.

“Instead of moving quickly to fast-track reliable, affordable power to increase supplies, the BPU and Trenton Democrats are instead scrambling to deflect this emergency with bureaucratic gimmicks that delay price hikes," Bucco said.