Here’s PSEG’s Latest Plan To Ease Rising Electric Bills In NJ This Summer

ESSEX COUNTY, NJ — PSE&G will be giving customers a $30 credit to their bills in July and August to help defray electricity rate hikes that kicked in earlier this month – but will be allowed to collect an extra $10 per month from September to February.

The utility company, which has a headquarters in Newark, recently announced the credits as part of its “summer deferral period.” The proposal was approved by the New Jersey Board of Public Utilities (BPU).

Here’s how it will work, the company said:

“For the months of July and August 2025, PSE&G will apply a credit of $30, including taxes, to each residential electric customer’s monthly bill. During this summer deferral period, PSE&G will continue to pay the electricity suppliers the full cost of the generation in the new electric supply rate. To recover the cost of the electricity provided and payments made to electric suppliers, PSE&G will collect from each residential electric customer’s monthly bill $10 for the months of September 2025 through February 2026. As previously announced, PSE&G has decided to forego recovery of any carrying costs (i.e., interest) for the credit to customers.”

As part of the agreement, the BPU also approved PSE&G’s proposal to waive all residential reconnection fees during the period from July 1 through Sept. 30, the company noted.

Meanwhile, PSE&G is planning a “summer moratorium” – an expansion of the Winter Termination Program – which provides protection against utility shut-offs for eligible residents. It begins July 1 and continues until Sept. 30.

The above measures are part of the company’s Summer Relief Initiative announced earlier in June.

‘LONG-TERM SOLUTIONS NEEDED’

Earlier this year, the state Board of Public Utilities (BPU) announced that electricity costs would increase again this year for most New Jersey residents and small businesses. The state’s four electric utility companies — Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy — all said they expected rates to increase between 17.2 and 20.2 percent as of June 1.

The latest hikes are due to the results of last year’s annual New Jersey Basic Generation Service auction, which determines the cost companies pay for power generated outside of the state. The BPU said a rise in demand and a stressed power grid are behind the rise in prices. Some experts have also pointed to the Pennsylvania Jersey Maryland (PJM) Interconnection, which manages the electric grid in New Jersey and 12 other states.

Gov. Phil Murphy has unveiled a series of executive actions that he said will help New Jersey residents manage electric costs ahead of the upcoming rate hike. The plan has been met with support, as well as criticism calling it a "pure political gimmick."

In May, PSE&G announced that it is amending its filing with the BPU to provide additional short-term relief in response to Murphy’s request.

The governor said that utility companies have “reaped billions in profits over the last 10 years.”

“While the utilities are not responsible for the rate increases, they have a responsibility to protect ratepayers,” Murphy said. “We ask that utilities share the load and commit to being part of the solution to the PJM cost crisis.”

• See Related: NJ Approves More Relief For Skyrocketing Energy Bills

PSE&G president and COO Kim Hanemann said there is “broad recognition” that utilities are not the cause of the recent price increases.

However, the company is “pleased to work with Gov. Murphy, the legislature and the BPU to develop measures to blunt the immediate impact of higher costs,” Hanemann added.

One issue that needs to be addressed? A serious supply and demand imbalance that PSE&G has been warning about for years, spokespeople say.

“As we deliver immediate support for customers, it is also time to turn our collective attention to delivering long-term solutions to address the power generation supply imbalance in the state,” Hanemann said.

“Our state needs a strategic, thoughtful integrated system plan to meet future demands,” Hanemann said, adding that PSE&G “remains committed to collaborating with policymakers on long-term solutions.”

• See Related: Electric Bills Being Driven Up By AI Data Centers In NJ, New Report Says
• See Related: Utility Companies Are Exploiting NJ Residents, Senator Says (Op-Ed)
• See Related: NJ Mayor Says Electric Hikes Are ‘Failure To Stand Against Greed’

SUMMER HEAT AND ENERGY EFFICIENCY

PSE&G also pointed to hot weather as a reason why customers might see their bills spike in the summer.

The amount of electricity needed to cool a house to 75 degrees when it’s 90 degrees outside is 125 percent higher than when it’s 85 degrees outside, the utility company said.

“Increased electric usage in summer months often coincides with high heat, frequently leading to increased electric usage as customers run their air conditioners more often,” PSE&G stated.

Customers can find information about how to become more energy efficient here and here.

• See Related: PSEG Says Its ‘Energy Efficiency’ Programs Are Working In New Jersey
• See Related: PSEG Has Given Free 'Energy Checkups' To Thousands Of Homeowners

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.