With electric utility costs skyrocketing, Murphy announces plans to help consumers
With a previously announced increase in electric utility costs coming in June, Gov. Phil Murphy announced Wednesday several executive actions aimed at helping consumers.
Monthly electric utility bills are expected to increase about $20 following the yearly electricity auction for the state’s top four electric providers — Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy — all of whom expect consumers to see at least a 17% increase in monthly electric utility costs.
The New Jersey Board of Public Utilities required the companies to come up with plans to mitigate the rate increases, including delaying the increase until the fall to avoid hitting consumers with an increase during peak electricity demand.
“New Jersey ratepayers are preparing for an unprecedented increase in utility costs,” Murphy said in a statement Wednesday. “While the utilities are not responsible for the rate increases, they have a responsibility to protect ratepayers.
“It’s clear that New Jersey’s four hometown electric utilities need to deliver more reasonable options.”
Last year, many customers saw high electric utility bills that were attributed to record temperatures that tested the electric grid’s capacity.
Murphy on Wednesday also called on the utilities to expand the winter power shutoff moratorium to include the months between July and September and to suspend reconnection fees.
Murphy directed the New Jersey Board of Public Utilities to evaluate all available funding and programming to stabilize utility bills and to expedite opening another Competitive Solar Incentive Program Solicitation and Community Solar Energy Program Capacity Block by year’s end.
Murphy previously told the board to explore expanding New Jersey’s nuclear energy production.
The governor recently signed into a law a requirement that electric utilities warn customers about increasing energy use midway through their billing cycles so they can adjust how much electricity they are consuming.
New Jersey has several programs to help offset energy costs, some of which are available low-income earners and seniors. They include the Universal Service Fund, Fresh Start Program, Payment Assistance for Gas and Electric Program, Low Income Home Energy Assistance Program, Lifeline, NJ Shares and NJ Comfort Partners.
The Murphy administration has tied increasing electric rates to demand outpacing supply, citing PJM Interconnections, one of several energy suppliers that serves about 65 million customers.
PJM has stated it has struggled to meet the growing demand for electricity, adding it is trying to expand its supplier base to meet that demand.
Murphy, however, has questioned if the increased electric costs are the result of “market manipulation” by PJM, calling for a federal investigation into its auction practices.
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Eric Conklin may be reached at econklin@njadvancemedia.com.