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The basics:

• NJBPU approves $60 summer energy bill deferral for residents
• Utility shutoffs suspended, reconnection fees waived for summer
• Universal Service Fund and REAP assistance programs expanded
• Debate intensifies over NJ’s long-term energy supply challenges

During its June 18 meeting, the New Jersey Board of Public Utilities approved several items aimed at addressing the energy bill crisis facing New Jersey ratepayers.

NJBIZ has reported extensively on this hot-button issue. The topic has gripped state politics – both in Trenton and on the gubernatorial campaign trail – as ratepayers endure a rate hike of up to 20% that took effect June 1. The increase came as a result of the state’s most recent energy auction.

That reality has set a wave of finger-pointing on who’s to blame for the hike – as well as the best ways to solve both the immediate bill increases ratepayers face, as well as the more broad issue of how to bridge the energy supply-demand imbalance and generate more power into the grid.

Gov. Phil Murphy and other state leaders recently announced a $430 million plan that would give all ratepayers a $100 credit – and an additional $150 for eligible low-to-moderate income customers. That package is still pending NJBPU approval.

At its Wednesday meeting, the NJBPU did approve a plan to defer $60 total ($30 in July, $30 in August) from bills during the high usage summer months.

The $30 deductions will be automatic for all residential ratepayers. All four major utility companies are participating (PSE&G, JCP&L, Atlantic City Electric and Rockland Electric Co.). Ratepayers will then pay back that interest-free deferral – spread out at $10 a month – from September to February.

Officials say customers will not pay anything more; and they are just seeking to provide some relief during these higher cost summer months.

Working on solutions

“I am grateful to our electric distribution companies for coming to the table to provide plans to ease costs for consumers and committing to being part of the solution to the current utility cost crisis created by PJM,” said Gov. Phil Murphy. “My administration is focused on immediate solutions despite big-picture concerns, and we are going to continue working with our EDC partners to offer relief to families and businesses struggling to afford increased utility costs.”

NJBPU President Christine Guhl-Sadovy said affordability is always top of mind for the agency.

“And today’s actions prove that we are here to help,” she said. “I want to thank New Jersey’s electric utilities for their good faith efforts to help improve the ratepayer experience this summer amidst the PJM-driven cost increases and ensure we are doing all we can to protect ratepayers. The utility mitigation plans are just another tool at our disposal to help ratepayers in the short term, on top of the historic relief announced earlier this month and ensure people don’t need to choose between paying their energy bills and other expenses this summer.”

What utility leaders are saying

PSE&G President and COO Kim Hanemann:

“While utilities like PSE&G are not responsible for the rate increases that took effect earlier this month, we are pleased to work with Governor Murphy, the legislature and the BPU to develop measures to mitigate the immediate impact of higher electricity costs for our customers. As we deliver immediate relief for customers, now is the time for further collaboration to deliver long-term solutions to address the power generation supply imbalance in the state, including the development of a strategic, thoughtful integrated system plan to meet New Jersey’s future energy needs.”

FirstEnergy President for New Jersey Doug Mokoid:

“JCP&L doesn’t control increasing supply costs, and neither do our customers. These measures, developed with the BPU and our peer electric companies, reinforce our commitment to helping New Jersey families. They complement our year-round energy efficiency and bill assistance programs that help our customers take control of their energy use.”

Atlantic City Electric Vice President of Regulatory Policy and Strategy Amber Perry:

“At Atlantic City Electric, we recognize that rising energy costs — especially during the high-usage summer months—pose real challenges for our customers. This announcement reflects our ongoing commitment to work collaboratively with the Board and other utilities to deliver meaningful relief. We remain focused on advancing solutions that support New Jersey’s growing energy needs while helping customers manage their bills and energy use more effectively.”

Rockland Electric President and CEO Michele O’Connell:

“Rockland Electric Company (RECO) is proud to work with the NJBPU, the New Jersey Division of Rate Counsel and the other New Jersey electric utilities on these efforts to mitigate bill impacts for our customers during peak summer months. As RECO continues to actively invest in our electric grid to enhance its reliability, we understand the financial pressures that many are facing. This partnership with the state to implement new ways to help alleviate these burdens for all customers, particularly our most vulnerable populations, is an incredible opportunity.”

Shutoff suspension

The mitigation plan with the utilities also calls for the suspension of shutoffs during the summer months, as well as the waiving of reconnection fees.

“The BPU is committed to proactively addressing the energy affordability challenges facing New Jerseyans,” said Guhl-Sadovy.

Other actions taken by the NJBPU include:

• Approved enhancements of the state’s Universal Service Fund program, offering increased monthly credits on income-eligible gas and electric bills.
  • More details available here
• Will launch second iteration of REAP (Residential Energy Assistance Program) to extend the $48.7 million initiative:
  • Begins Aug. 1
  • Provides $150 for eligible households via six $25 bill credits
  • Automatically applied to those already enrolled in existing programs, such as Winter Termination, Low Income Home Energy Assistance Program (LIHEAP) or USF, or to those facing other severe financial hardship
• Approved Phase 1 of the Garden State Energy Storage Program. GSESP aims to expand the amount of grid-scale energy storage capacity in the state.
  • More details available here

Watch the full NJBPU meeting:

Criticism

Senate Republican Leader Anthony Bucco, R-25th District, said the NJBPU agreement with the utilities is more politics — with no solutions.

“The latest move by the BPU to delay utility rate hikes until after the summer might buy them time politically, but it does absolutely nothing to address the underlying issue: New Jersey doesn’t have enough energy generation to meet demand,” said Bucco in a June 18 statement, calling on Democrats to scrap the Energy Master Plan and invest in reliable and affordable energy sources. “Delaying rate hikes is just another political sleight of hand meant to avoid accountability in an election year

“New Jerseyans deserve real solutions – and Senate Republicans remain committed to pushing for long-term energy policies that put affordability and reliability first.”

Those sentiments were echoed by Eric DeGesero, who represents the NJ Propane Gas and NJ Fuel Merchants Association. DeGesero has been a vocal critic of the Murphy administration over its energy policy.

“We know converting your house to electric heat is so expensive you needed a loan, but thanks to Gov. Murphy’s failed energy policies, the BPU is now forcing power companies to give us 0% loans, just so we can stay cool and keep the lights on this summer,” said DeGesero in a June 18 statement. “The only real solution to this self-inflicted energy crisis is for New Jersey to reverse course on Gov. Murphy’s failed Energy Master Plan immediately.”