NJ Electric Bills to Remain Stable This Summer, Though Affordability Concerns Persist
TRENTON — New Jersey residents can expect relative stability in their electric bills this summer, with most seeing no increase and some receiving credits, according to a decision by the New Jersey Board of Public Utilities (BPU) on Thursday. However, officials and advocates caution that “stable” does not equate to “affordable,” particularly as property taxes in the state reach record highs.
The BPU certified the results of the 25th annual Basic Generation Service auction, which determines the cost of electricity supply for utility companies. The outcome means electricity rates will remain largely unchanged for most New Jersey residents starting June 1. Customers will receive additional bill credits this summer, a move championed by Governor Mikie Sherrill.
The impact will vary by utility. Customers of PSE&G are expected to see a modest decrease in their monthly bills, while those served by JCP&L may see a slight increase. However, Governor Sherrill has ordered the BPU to offset any increases for JCP&L customers with credits applied to their bills by July 1.
“Affordability is my top priority,” Governor Sherrill said, emphasizing her commitment to controlling costs and providing relief to ratepayers. “The recent auction results demonstrate that the fight to implement price caps at PJM is working to keep electricity costs from further skyrocketing.”
The BPU explained that a third of residential electricity supply for the next three years was secured through this auction, with the remaining portion already locked in from previous years. A temporary “price collar” adopted last year also helped to prevent more significant price spikes, according to the board.
The news arrives as New Jersey grapples with increasing financial pressures on households. Recent data indicates the average property tax bill in the state has climbed to an all-time high, adding to the burden on residents.
The issue of rising utility costs was a central theme in Governor Sherrill’s campaign. Upon taking office in January, she issued an executive order declaring a state of emergency regarding utility costs. The BPU is now directed to provide Residential Universal Bill Credits to help offset supply increases beginning with the June billing cycle.
While the auction results offer a degree of relief, concerns about long-term affordability remain. Last year, electricity bills jumped by as much as 20% for New Jersey households, a situation officials are keen to avoid repeating. Brian Lipman, who directs the state’s Division of Rate Counsel, described the current outcome as “good news for ratepayers,” adding, “The pain is still there, but at least we’re not increasing it.”
The stability in rates is attributed, in part, to efforts to cap prices at PJM Interconnection, the regional grid operator. Last year’s spike in electricity costs was largely driven by an increase in capacity costs on the regional grid, according to BPU President Christine Guhl-Sadovy.
Despite the positive developments, advocates continue to emphasize the need for ongoing solutions to address the affordability crisis. Chris Widelo, state director of AARP New Jersey, highlighted the struggles faced by many residents. “We are hearing from our members around the state who are struggling with utility bills that are becoming more and more unaffordable,” he said.
