Many New Jersey residents will see a significant increase in their electric bills this summer, with monthly costs rising by over $20 due to recent energy price spikes at key electricity auctions.
The New Jersey Board of Public Utilities (BPU) announced these increases after its basic generation service auction, which followed a capacity auction held by PJM Interconnection, the grid operator serving New Jersey, Pennsylvania, Maryland, and 10 other states.
How Much Will Electric Bills Increase?
Based on an average usage of 650 kWh per month, the estimated monthly bill increases for each utility provider are:
- Atlantic City Electric → + $28 (17%)
- JCP&L (Jersey Central Power & Light) → + $22 (20%)
- PSE&G (Public Service Electric & Gas) → + $26 (17%)
- RECO (Rockland Electric Company) → + $25 (18%)
Why Are Energy Prices Rising?
The primary reason for the price surge is PJM’s capacity auction, which determines how much electricity supply is needed for future years. This year’s auction resulted in a capacity price that was nine times higher than previous years, according to Advanced Energy United, a renewable energy advocacy group.
Factors Driving the Increase:
- Higher Electricity Demand: More server farms and data centers are driving up electricity consumption.
- Limited Supply Growth: Delays in power plant approvals and grid interconnections are preventing new energy projects from coming online.
- Renewable Energy Backlog: Over 97% of pending power projects in PJM’s interconnection queue are solar, wind, or battery storage, but many face delays in approval and construction.
BPU’s Response
BPU President Christine Guhl-Sadovy acknowledged the frustration over higher bills:
“No one likes to see bill increases, so we are committed to doing everything we can to keep prices as low as possible.”
She also noted that clean energy projects waiting for approval could help increase supply and potentially reduce prices in the future.
What Can You Do If You Can’t Afford Your Electric Bill?
Utility Assistance Programs
New Jersey residents struggling to pay their electric bills may qualify for financial assistance programs to prevent service shut-offs. You can find more details under the “customer assistance” section of the BPU website at NJ.gov/BPU.
Energy Assistance Day Event
If you need help applying for assistance, representatives from utility companies and community groups will be available at an Energy Assistance Day event in Toms River, NJ:
- Location: Ocean County Library
- Date: February 19, 2025
- Time: 9:30 a.m. – 3:30 p.m.
