Energy Providers Propose Relief Plans For Higher Monthly Bills

NEW JERSEY - Customers of four major New Jersey energy providers are hoping to get a bit of relief for the time being after large monthly hikes in costs took effect earlier this month.

The New Jersey Board of Public Utilities (BPU) has ordered Atlantic City Electric (ACE), PSE&G, Jersey Central Power & Light (JCPL) and Rockland Electric Company (RECO) to provide plans to defer the large increase in the cost of electricity until the fall, according to documents filed with the BPU.

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.

Customers of the four companies are 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.

Under these mitigation plans that are pending approval from the BPU, the higher rates that went into effect on June 1 would still have to be paid, but not until the fall months, when energy usage is at a lower level.

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The BPU has proposed a “credit” program where customers would be eligible to carry over their incurred costs until this later time period.

In response, JCPL argues that their “analysis of 100% mitigation of the summer BGS rate increase beginning July 1 would result in an increase of 31.1% for the average Rate RS customer when recovery of that deferred amount begins on October 1, 2025.

…Higher monthly bills during the summer due to air conditioning give way to higher heating bills in the winter (particularly for customers with electric heating), somewhat balancing these expenses over an annual period. Deferring summer costs to the winter period simply compounds and concentrates the BGS rate increase for customers during the winter period.”

They go on to further point out that usage of energy in two intra-year periods will result in the credits and charges not being balanced (i.e., summer credits received less than or greater than winter charges paid) for most customers; thus, this will result in some customers receiving summer credits that are greater than the winter charges and some customers paying higher winter charges.

Potential Solutions:

JCPL

“JCP&L would agree to implement a limited summer shut-off moratorium under which it would suspend collection activities for July, August, and September 2025 for all self reported vulnerable customers, defined using the same criteria as Winter Moratorium Protected. JCP&L would not modify its work practices except that it would not disconnect eligible customers. All normal letters and notices would be sent as during the process, including door knocks and attempts to collect past due dollars; however, JCP&L would not proceed with disconnection.”

ACE

“ACE has complied with the direction provided by Board Staff and included bill impact mitigation options at the 100%, 50% and 25% mitigation levels. ACE has also reflected eight month and four month deferral recovery periods in its Petition. In addition, ACE has identified several items that must be reflected in any Board order implementing bill impact mitigation measures. “

PSE&G

• A Summer Moratorium – The program provides utility shut-off protection to low-income and qualified individuals from July 1, 2025 until September 30, 2025.
• A suspension of costs for reconnection.

Kim Hanemann, president and COO, added that, “PSE&G is not the cause of the 17% rise in electric rates, but we can support our customers by advancing critical solutions. These actions should help relieve a burden to families and communities just as the weather is getting warmer and electricity usage hits its peak."

Rockland Electric Company

"• Option 1: 100% deferral – the entire BGS increase would be offset by the credit;

▪ Option 2: 50% deferral – half of the increase would be offset by the credit; and

▪ Option 3: 25% deferral – one-quarter of the increase would be offset by the credit.

RECO proposes to credit residential customers and recover the credited amount and carrying charges through a new mechanism called the Temporary Supply Offset Clause (“TSOC”)...The estimated interest expense will be included in the cost recovery.”

On Monday, the Senate approved Senate Resolution 154 (SJR-154) on Monday by a vote of 25-12 that calls for the BPU to look into the regional pricing system responsible for the higher monthly bills. The New Jersey Senate Democrats say SJR-154 also calls for "any needed reforms to bring down consumer costs."

Senate Democrat John Burzichelli (D-Gloucester/Salem/Cumberland), co-author of the resolution with Linda Greenstein (D-Middlesex/Mercer), believes a closer look needs to be given to what is going on behind the scenes:

“The energy auction that deserves much of the blame for the spike in utility bills is clearly broken and needs to be fixed. The current system is deeply flawed and susceptible to manipulation. We need to investigate the specific causes to determine what types of reforms are needed to prevent this from happening again and to ensure that customer affordability is made the priority.”

In response, Senate Republican Leader Anthony M. Bucco (R-Morris) proposed an amendment to Senate Joint Resolution 154 (SJR-154) in which he calls for the expansion of a scope when it comes to looking into what is truly responsible. Bucco argues that the BPU should not be absent from being evaluated as a major source of the problem:

“During the Select Committee hearing on rising energy costs, we heard numerous stakeholders and experts who clearly said the policies coming out of Trenton are contributing to our energy shortage and subsequent skyrocketing energy bills,” said Sen. Bucco. “I am asking that we entrust the Select Committee on rising energy costs—the body that was created to get to the bottom of our energy crisis—to be the institution to investigate and expand the proposed investigation to include PJM, the BPU, and any other institution that could have contributed to this crisis.”

The New Jersey Board of Public Utilities is set to meet again on Wednesday, June 18.

Stay with Patch for all of the latest developments.

Resources offered by the BPU to assist with the rising utility costs