With New Jersey residents bracing for significant increases in utility bills beginning June 1, 2025, Governor Phil Murphy on Tuesday announced a sweeping affordability initiative to help manage the impact and press utilities to offer relief to ratepayers.
The state’s four major electric utility companies—Public Service Electric and Gas (PSE&G), Jersey Central Power and Light (JCP&L), Atlantic City Electric, and Rockland Electric—submitted plans earlier this month outlining proposed strategies to mitigate the coming rate hikes, as required by the New Jersey Board of Public Utilities (NJBPU).
“New Jersey ratepayers are preparing for an unprecedented increase in utility costs,” Governor Murphy said. “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. These utilities have reaped billions in profits over the last ten years. My Administration will continue to identify and put all options on the table to mitigate rate increases.”
The upcoming rate hike stems from rising capacity market costs within the PJM Interconnection regional grid, which are passed along to customers through the state’s annual Basic Generation Service (BGS) auctions. Depending on the utility, the average residential customer bill is expected to increase between 17.23% and 20.20% starting in June.
To soften the blow, Governor Murphy is urging utilities to:
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Expand the Winter Termination Program—designed to prevent service disconnections during cold months—to cover the summer peak usage months (July through September), a step JCP&L has already proposed.
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Suspend reconnection fees through the end of peak summer demand.
Murphy has also directed the NJBPU to evaluate all funding and program options to stabilize bills, including:
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Fast-tracking another Competitive Solar Incentive Program and expanding the Community Solar Energy Program (CSEP) by year’s end.
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Opening a new proceeding on resource adequacy to examine how the state can secure reliable, clean, and cost-effective electricity—including evaluating New Jersey’s participation in PJM’s capacity market and exploring new generation sources like advanced nuclear technologies.
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Addressing growing demand caused by the data center boom in the PJM region, which has placed additional strain on generation and infrastructure.
The governor emphasized the role of clean energy in mitigating rate increases. According to the NJBPU, renewable sources like solar and wind have already saved New Jersey ratepayers billions in avoided capacity costs. In the 2024 capacity auction, clean energy helped prevent a 60% jump in prices—savings that could have cost the state $1.1 billion more without their contribution.
New Jersey is also expanding its energy assistance programs:
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A second round of the Residential Energy Assistance Payment (REAP) initiative—originally launched last year—was approved by the Board in April, providing one-time $175 bill credits to over 278,000 qualifying households.
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A proposal to expand the Universal Service Fund (USF), which supports households earning up to 60% of the state’s median income (about $92,000 for a family of four), is under review. The expansion would increase benefit amounts and require utilities to meet enrollment goals.
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Community Solar Energy Program subscribers already receive guaranteed savings of 15% or more, and an additional 250 megawatts of solar capacity will be allocated to expand the program’s reach.
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The first cycle of the state’s energy efficiency programs has already delivered $600 million in customer savings and will continue generating cost reductions over time.
How to Get Help
Governor Murphy reiterated his administration’s commitment to energy affordability and encouraged residents to seek assistance if struggling with bills.
Programs available to residents include:
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Universal Service Fund (USF)
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Fresh Start Program
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Payment Assistance for Gas and Electric (PAGE)
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Low Income Home Energy Assistance Program (LIHEAP)
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Lifeline Utility Assistance
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NJ SHARES
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NJ Comfort Partners
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Winter Termination Program (Nov. 15 – Mar. 15)
For eligibility details and application guidelines, residents can visit the NJBPU website under the “BPU Assistance Programs” section.