NJ Approves More Relief For Skyrocketing Energy Bills

More assistance is on the way for New Jerseyans impacted by the higher monthly energy bills this summer.

Last week, the New Jersey Board of Public Utilities approved stipulations with the state's four electric distribution companies, Public Service Electric and Gas (PSE&G), Jersey Central Power and Light (JCP&L), Atlantic City Electric (ACE), and Rockland Electric Company (RECO), to help mitigate the costs of power throughout the next few months.

The plans will include two interest-free $30 deferrals during July and August for all residential electric customers to be repaid over the subsequent six months. The companies are also suspending power shutoffs for the summer months and waiving any reconnection fees.

Energy Providers Propose Relief Plans For Higher Monthly Bills

The funding and disbursement timeline for the second installment if the Residential Energy Assistance Payment, part of $430 million of direct bill assistance from the state, was also approved for income-qualifying customers. In addition, enhancements to the Universal Service Fund program were approved, including increasing both the minimum and maximum benefit amounts, mandating greater engagement from utility companies in enrolling eligible residents, and promoting better coordination with other energy efficiency efforts assistance programs. These changes are set to take effect on October 1, 2025.

The higher monthly rate hikes went into effect on June 1 as a result of last year’s annual New Jersey Basic Generation Service (BGS) auction. The BGS determines what the providers pay for power from outside of New Jersey. The BPU said the rise in demand and a stressed power grid can also be blamed for the price rise.

The Pennsylvania Jersey Maryland (PJM) Interconnection runs the grid used by New Jersey and 12 other states, along with the District of Columbia.

Governor Phil Murphy says there are multiple factors that are driving up the cost of energy in New Jersey, but that there is one major "culprit."

"That culprit is the Pennsylvania Jersey Maryland Interconnection. PJM has failed to plan for increased energy capacity and is trying to pass the buck onto the people of New Jersey." Customers of the four companies were all bracing for between a 17.2 and 20.2 percent increase in their monthly bills this year, bringing the total hike close to 30 percent higher per month for some customers as compared to 2023.

On June 5, Governor Murphy announced a direct bill assistance program that will equal at least $100 of relief for all customers, and up to $250 for qualifying low-moderate income residents, according to the state.

“I am grateful to our electric distribution companies for coming to the table to provide plans to ease costs for consumers and committing to being part of the solution to the current utility cost crisis created by PJM,” added Governor Murphy. “My Administration is focused on immediate solutions despite big-picture concerns, and we are going to continue working with our EDC partners to offer relief to families and businesses struggling to afford increased utility costs.”

A virtual public information session will take place on Monday, June 23 at 5:30 p.m. as an overview of the summer's cost-saving and consumer protection efforts.

MORE FROM PATCH:

1. Electric Bills Being Driven Up By AI Data Centers In NJ, New Report Says
2. Murphy Announces Relief Plan Amid Massive NJ Electric Rate Hike