NJ Electric Rates Going Up Again In June: See How Much

NEW JERSEY —Electricity costs will increase again for most New Jersey residents and small businesses this year, the state Board of Public Utilities (BPU) said Wednesday.

This comes after a sweat-inducing summer of skyrocketing bills, which had both residents and lawmakers demanding answers for the hikes.

Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy all expect rates to increase between 17.2 and 20.2 percent as of June 1. The latest increase comes from the results of New Jersey's annual Basic Generation Service (BGS) auction, which sets the price companies pay for electricity generated outside the state.

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.

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.

For the average residential customer, assuming the use of 650 kilowatt hours a month, the increases are as follows:

• Atlantic City Electric: A 17.23 percent increase, or $28.02 per month
• JCP&L: A 20.20 percent increase, or $22.67 per month
• PSE&G: A 17.24 percent increase, or $26.87 per month
• Rockland Electric: An 18.18 percent increase, or $25.48 per month

Lipman said the Rate Council, which is an independent state agency that advocates for ratepayers, is "deeply concerned" about the outcome of the auction.

"This was not simply an issue of supply and demand as PJM’s continued failure to fix its market rules and interconnection queue will lead to even higher prices in the future and slow our ability to build out our electrical infrastructure," he said.

The BGS auction determines, in part, the cost of electricity for most New Jersey residents and many businesses for a 12-month period starting June 1, 2025. The NJBPU’s authority over the auction is limited to certifying the results as consistent with market trends and does not extend to influence pricing, according to a BPU news release.

And, that supply rate increase is only a piece of the pie. Distribution rates, power plant costs, and weather conditions also affect customers' bills — as does monthly usage.

The BPU has several programs available to help low-income residents who are having difficulty affording their energy bills.