New Jersey electric customers will see temporary relief this summer after state regulators approved a plan aimed at offsetting controversial price hikes.
Under an order approved by the Board of Public Utilities on June 18, all residential ratepayers will receive a $30 credit on their electric bills in both July and August. The credits will be repaid in $10 monthly installments from September through February, when electric usage typically falls.
The action follows a June 1 spike in wholesale electricity prices, which raised bills by 17% to 20% for many customers. Jersey Central Power & Light customers saw the highest increase at 20.2%.
Separately, Gov. Phil Murphy announced a $100 credit for all electric customers. Implementation details are still pending. Additional credits of up to $150 will be available for low- and moderate-income households under an expanded $430 million relief program.
BPU officials said the move is designed to reduce costs during peak summer demand without increasing long-term financial burden. Utilities will not charge interest or additional fees for the deferred payments.
The board also approved measures to suspend service shutoffs during July, August and September for customers who qualify for existing assistance programs. Utilities will waive reconnection fees during the same period and expand deferred payment plans from 12 to 24 months.
In addition, the board raised award levels for the state’s Universal Service Fund. Monthly credits will rise to a minimum of $20 starting in October, and the maximum monthly benefit will increase from $180 to $200.
Electricity prices rose after a February auction set new wholesale rates for customers who do not choose alternate energy providers. Regulators and utilities have attributed the increases to market forces beyond their control.
The measures come amid criticism from Republicans, who blame the state’s energy policies for supply shortages. Senate Minority Leader Tony Bucco called the credits a “politically motivated gimmick.”
Despite political disagreements, the full board voted unanimously to adopt the summer relief package.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.