Governor Phil Murphy Announces Measures to Ease Burden of Rising Electricity Costs in New Jersey
Governor Phil Murphy has announced a series of actions aimed at easing the burden of rising electricity costs for New Jersey residents, anticipating rate increases scheduled to begin June 1st. This follows a directive issued two weeks prior by the state Board of Public Utilities (BPU), which mandated the state's four electric utility companies—Atlantic City Electric, PSE&G, Jersey Central Power & Light, and Rockland Energy—to develop plans to lessen the impact of high electricity bills on residential customers during peak summer months. Utility companies were also asked to consider postponing rate increases to periods of lower usage and to explore opportunities for rate stabilization and cost reduction.
Murphy emphasized the unprecedented nature of the upcoming utility cost increases, stating that while utilities are not directly responsible for the rate hikes, they have a duty to protect consumers. He expressed the need for the state’s utilities to provide more practical and affordable options. The announced measures build on previous state efforts, including a push for electric utilities to voluntarily extend the Winter Termination Program, which prevents service disconnections, through September and to suspend reconnection fees.
The BPU is being directed to evaluate available funding and programming to stabilize bills, expedite renewable energy initiatives like the Competitive Solar Incentive Program and Community Solar Energy Program, and open a new proceeding focused on resource adequacy, aiming to bring additional power generation online. Further, the state will assess the impact of data center growth and evaluate New Jersey’s participation in the regional capacity market administered by PJM Interconnection.
In February, the BPU announced that electricity costs would increase for most New Jersey residents and small businesses, with anticipated rate hikes between 17.2 and 20.2 percent as of June 1st. This increase, resulting from New Jersey’s Basic Generation Service auction, is expected to add over $20 to the average customer’s monthly bill, significantly impacting families and businesses. The BPU has previously attributed these increases to rising demand and a stressed power grid. PJM Interconnection manages the power grid for New Jersey and twelve other states, along with the District of Columbia.
New Jersey has previously implemented measures to alleviate energy costs, providing approximately $295 million in assistance to over 455,000 families last year. The Residential Energy Assistance Payment (REAP) initiative has also provided over $48.7 million in bill credits to over 278,000 qualifying households, with a second payment approved for Fiscal Year 2025.