New Jersey utilities to cut $60 from electric bills to offset controversial price spike

The New Jersey Board of Public Utilities on Wednesday approved a raft of affordability measures meant to blunt the impact of a surge in electricity prices that took effect at the start of June.

In unanimous votes, the utility regulator backed orders that would defer a total of $60 from summer electricity bills, extend $175 in bill credits to low-income ratepayers, waive reconnection fees, and extend winter shutoff protections through July, August, and September.

“Sometimes, we don’t have the opportunity to thank our utilities enough. They really stepped up to the plate very quickly,” said BPU Commissioner Zenon Christodoulou. “It wasn’t their doing, that these prices went up, but they really are taking a lot of the brunt of this and we really appreciate their efforts. They came to us and they came up with plans as quickly as we could imagine.”

The deferred bill program would cut $30 from monthly bills for all ratepayers in July and August, when summer heat pushes electricity usage to its peak.

Customers would repay those balances, which would not increase due to interest or carrying costs, over the following six months, said BPU Executive Director Bob Brabston.

“No customer will pay a penny more as a result of this, and all customers will benefit by having their typically high summer bills eased somewhat as part of this proposal,” Brabston told the board.

Qualifications for summer shutoff protections are identical to those in the Winter Termination Program. Residents who are enrolled in certain assistance programs — like the federally funded Temporary Assistance for Needy Families or Low Income Home Energy Assistance Program, among others — or receive state or local utility assistance are eligible for winter shutoff protections.

The deferred bill program, which would require submissions from the state’s four regulated utilities by July 1, also would bar summer shutoffs for ratepayers protected by Linda’s Law, which requires utilities to wait 90 days before discontinuing services over nonpayment for customers who use life-sustaining medical equipment powered by electricity.

They also call for utilities to offer deferred payment agreements lasting up to 24 months, compared to the 12 now required under state law. Those agreements are separate to the bill deferral program for July and August.

The actions are regulators’ latest effort to defray the impact of a steep rise in electricity supply costs that pushed rates up by roughly 20% at the start of June.

Democratic officials have blamed the cost hikes on PJM Interconnection, the state’s grid operator, for delays in connecting renewable projects to the grid.

“It is not perfect. There is no silver bullet here,” BPU President Christine Guhl-Sadovy said Wednesday. “These generation cost increases are outside of the (regulated utilities). They’re outside of the control of this agency, but it doesn’t mean that we don’t all share some responsibility to help to reduce costs, particularly in these very, very high-usage months.”

Republicans have charged Gov. Phil Murphy’s renewables-heavy energy agenda stalled new generation in the state, leading to the supply-demand imbalance that’s driving up costs.

On Wednesday, Senate Minority Leader Tony Bucco (R-Morris) called the board’s latest moves a politically motivated election-year effort.

“The problem is it doesn’t fix the problem. It’s just an election-year gimmick to get them past another election,” Bucco said. “This is something we have to address: How are we going to fix this? And really, the only way to fix it is to increase supply here in New Jersey.”

He said officials could instead take up Republican proposals that would, among other things, suspend the imposition of sales tax on energy.

The BPU on Wednesday approved the first phase of the Garden State Energy Storage Program. That program aims to award contracts for between 350 megawatts and 700 megawatts by Oct. 31.

A different order approved by the board will extend $48.7 million in Residential Energy Assistance Program credits to ratepayers eligible for winter-shutoff protections.

Those credits would be applied to seven monthly bills beginning in August and ending February 2026 in equal installments of $25, for a total benefit of $175. The benefit was first paid last year, but it was applied as a one-time $175 credit to August utility bills.

Credits under the Residential Energy Assistance Program is part of a $430 million plan Murphy, lawmakers, and regulators announced earlier in June, a BPU spokesperson said.

That program, which the BPU has not yet approved, promises a $100 benefit to all New Jersey ratepayers with an additional $150 for those who qualify for the Winter Termination Program.

In a separate vote, the board approved higher award levels under the Universal Service Fund, a utility assistance program administered by the Department of Community Affairs that applies monthly credits to low- and moderate-income households.

The floor for monthly utility credits under the Universal Service Fund will rise to $20, from $5, in October, while maximum monthly credit would increase from $180 to $200.

Of the roughly 226,000 who received benefits from the Universal Service Fund last year, about 136,000 received the smallest possible credits, while approximately 8,000 got the maximum allowed amount.