TOMS RIVER, N.J. — State Sen. Carmen Amato Jr. and Assemblymen Brian Rumpf and Gregory Myhre are calling on the New Jersey Board of Public Utilities to reject Jersey Central Power & Light’s proposed 8.8% residential electric rate increase, saying it would place an additional financial burden on ratepayers already struggling with rising living costs.
In January, Governor Mikie Sherrill promised a rate hike, but rates have continued to increase, and now, JCP&L is ignoring her request to freeze rates with a massive rate increase.
In a letter to BPU President Ben Hertz-Shargel, the three 9th Legislative District Republicans urged regulators to “immediately and outright reject” the utility’s latest filing.
“It is our understanding that under the proposed increase, the average JCP&L customer’s electric bill would increase by $14.23 per month, or $170.76 annually,” the lawmakers wrote. “If approved by the BPU, the proposed increase would take effect in January 2028, immediately following the holiday season.”
Lawmakers say residents have reached their limit
Representing much of Ocean County, the legislators argued New Jersey residents should not continue absorbing higher utility costs.
“Our Delegation is once again calling on the BPU and the Sherrill Administration to reject JCP&L’s proposed 8.8% electric rate increase,” they wrote. “Such action would provide meaningful relief to struggling ratepayers and send a clear message that New Jersey residents cannot continue to be expected to absorb higher utility costs while rate increases are routinely approved in Trenton.”
The lawmakers also pointed to legislation they have introduced that would allow New Jersey residents to claim a state income tax deduction for the sales tax and societal benefits charges paid on residential electric and natural gas bills.
Another proposal sponsored by the delegation would dedicate increases in energy sales tax revenue to utility assistance programs rather than the state’s General Fund.
JCP&L says investment is needed for reliability
JCP&L filed its proposal with the Board of Public Utilities seeking a $253 million increase in base distribution rates and recovery of approximately $476 million in deferred storm restoration costs over a 10-year period.
If approved, the average residential customer using 767 kilowatt-hours of electricity each month would see a bill increase of approximately $14.23 per month, or about 8.8%, beginning in January 2028.
The utility says it plans to offset the increase during 2027, delaying the impact on residential customers until 2028.
“Customers shouldn’t have to choose between affordability and reliability,” said Doug Mokoid, FirstEnergy President of New Jersey. “Our balanced approach puts both front-and-center simultaneously by minimizing the impact on bills today and giving customers time to plan, while continuing to invest in the infrastructure needed to deliver safe, reliable service for generations to come.”
JCP&L said the rate request would support an additional $2.1 billion in electric distribution investments as part of a broader five-year, $6.9 billion capital improvement program.
Utility cites improved service
The company says investments over the past three years have already improved reliability.
According to JCP&L, it invested $1.5 billion in infrastructure during that period, resulting in a 15% improvement in reliability in 2025 compared with the previous year and a 38% improvement so far this year.
“While we’ve made progress over the past two years, we still have more work to do,” said Patricia Mullin, JCP&L Vice President of Operations. “When we invest, our customers benefit. This means fewer interruptions for families, more time open for businesses and more investment in our communities and economy.”
The proposal also includes additional funding for tree trimming and removal, with the utility noting that dead and diseased ash trees have accounted for about 60% of tree-related outages since 2020.
The Board of Public Utilities will review the proposal before deciding whether to approve, modify, or reject the requested rate increase.
Key Points
- Sen. Carmen Amato Jr. and Assemblymen Brian Rumpf and Gregory Myhre are urging the BPU to reject JCP&L’s proposed 8.8% rate increase.
- The proposal would increase the average residential electric bill by about $14.23 per month beginning in January 2028.
- JCP&L says the increase is needed to recover storm costs and fund more than $2 billion in electric system improvements.
- The rate request remains under review by the New Jersey Board of Public Utilities.
FAQ
How much is the proposed rate increase?
Approximately 8.8% for residential customers, or about $14.23 per month for a typical customer.
When would the increase take effect?
If approved, residential customers would begin seeing the increase in January 2028.
Why does JCP&L want the increase?
The company says it is needed to recover deferred storm restoration costs and continue investing in electric infrastructure and reliability improvements.
Who opposes the proposal?
State Sen. Carmen Amato Jr. and Assemblymen Brian Rumpf and Gregory Myhre have publicly called on the BPU to reject the filing.
Who makes the final decision?
The New Jersey Board of Public Utilities.
Source: Office of Sen. Carmen Amato Jr.; Jersey Central Power & Light filing with the New Jersey Board of Public Utilities
