New jersey about to get hit with 20% energy rate hike, here's what you can do

NEWARK, N.J. — Public Service Electric and Gas Company (PSE&G) has amended its May 7 filing with the New Jersey Board of Public Utilities (BPU) to provide additional short-term relief for customers facing sharp electric bill increases this summer. The changes come in response to calls from Gov. Phil Murphy and are linked to recent spikes in electricity supply costs driven by high capacity market prices in the PJM Interconnection.

The updated filing includes proposals to temporarily offset customer bills starting July 1, suspend reconnection fees, expand the Winter Termination Program for vulnerable residents, and waive carrying charges associated with any credits issued during the summer months. PSE&G President and COO Kim Hanemann said the move reflects the company’s commitment to working with customers and policymakers during this period of economic strain.

“As Gov. Murphy said yesterday in his press release, utilities are not the cause of the unexpected rise in utility rates, but we have a role to play in providing options to assist our customers,” Hanemann said. “We will continue to work with policymakers on short-term solutions to assist our customers while working with the state on long-term solutions.”

PSE&G’s May 7 filing initially proposed a Temporary Supply Offset Clause (TSOC), outlining three options—100%, 50%, and 25% credits—to help shield customers from cost increases stemming from PJM’s July 2024 Base Residual Auction. These proposed credits aim to delay and reduce the impact of higher electricity supply costs without creating long-term customer debt.

Relief measures and community outreach expanded

The expanded proposal includes suspension of reconnection fees and the voluntary removal of carrying costs tied to temporary credits. PSE&G emphasized that this action is designed to alleviate financial pressure during peak summer demand, especially for low-income and at-risk households.

The utility has also renewed efforts to promote awareness of energy assistance programs, working alongside nonprofit and community organizations. More than 415,000 customers have benefitted from PSE&G’s energy efficiency programs, which help lower long-term usage and reduce overall bills. Additionally, approximately 226,000 customers received over $265 million in direct support in the past year through outreach initiatives.

PSE&G has highlighted that its residential electric bills remain close to 2008 levels when adjusted for inflation. The utility says it is one of the top national performers in affordability and reliability.

Calls for long-term capacity market reform

In parallel with the proposed short-term measures, PSE&G is urging policymakers to consider long-term changes in response to persistent supply-demand imbalances in the PJM grid. The company supports policy and legal reforms that would encourage the development of new electric generation to stabilize future pricing.

“We remain committed to working with stakeholders in government regarding long-term solutions to these significant rate increases,” the utility said.

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