New Jersey residents will soon see another round of relief on their electric bills as the state grapples with steep rate hikes fueled by increased demand, supply shortages, and strain on the power grid. On Wednesday, the New Jersey Board of Public Utilities (BPU) approved $100 in bill credits for all residential electric customers this fall, but some lawmakers are warning that the program is a short-term political maneuver that will ultimately cost ratepayers more.
The credits — $50 in September and another $50 in October — will be automatically applied to accounts for customers of JCP&L, Atlantic City Electric, PSE&G, and Rockland Electric Company. No action will be required from account holders.
Governor Phil Murphy framed the move as an urgent step to address what he called the “PJM cost crisis,” which has driven up wholesale power prices amid record-breaking summer heat and a stressed power grid. “Providing economic relief to our residents is critical in managing rising electric costs,” Murphy said. “No New Jerseyan should fear losing electricity, and we will continue to work with BPU to combat untenable energy bills.”
This latest relief comes after the BPU authorized two $30 bill credits in July and August, funded through the Residential Universal Bill Credit program using proceeds from the Regional Greenhouse Gas Initiative. Those credits, however, will be recouped without interest from September through February.
Electric rates surged in June after last year’s Basic Generation Service auction set higher prices for electricity purchased outside the state. The increases translated to higher monthly bills for average customers, with JCP&L customers hit with a hike of more than 20 percent, Atlantic City Electric customers paying about 17 percent more, and PSE&G and Rockland Electric customers seeing increases of over 17 and 18 percent respectively.
The BPU said it was particularly concerned that high electricity usage in August and September, combined with the already elevated rates, would push bills even higher this fall. Officials cited the need to protect vulnerable populations and urban residents who face disproportionately high temperatures due to the heat island effect.
Assemblyman Alex Sauickie, a Republican from Ocean County, blasted the measure as an election-year “bribe” designed to win votes. He argued that the temporary relief will be clawed back from customers during the winter, when bills are typically lower, leading to a hidden spike at a time when residents can least afford it. “Electric bills have tripled because of state Democrats’ failed leadership and policies, and now they want to buy votes with $160 of temporary credits,” Sauickie said. “Bills will be shockingly high because customers will be forced to pay it all back.”
Sauickie linked the surge in rates to the Murphy administration’s closure of the Oyster Creek nuclear plant and five major coal and natural gas facilities, which he said cut 20 percent of the state’s dependable energy supply. PSE&G has already notified customers it will add $10 per month to bills from September through February 2026 to recover the summer credit costs.
A member of both the Assembly Telecommunications and Utilities Committee and the Assembly Republican Energy Affordability Task Force, Sauickie has proposed permanently eliminating certain charges, including the $180 annual smart meter opt-out fee and the sales tax on electricity and natural gas usage. He said legislative Democrats have blocked these cost-saving measures while pushing forward what he called a “costly green energy agenda” that has left the state with stalled solar projects, a failed offshore wind program, and mandates that are driving up rates.
Under the BPU order, electric distribution companies must submit a report within 45 days of the final credit disbursement detailing the number of accounts credited and the total funds distributed. Customers in need of additional assistance can apply for aid through programs including the Universal Service Fund, Fresh Start, the Payment Assistance for Gas and Electric Program, the Low Income Home Energy Assistance Program, Lifeline, NJ Shares, and NJ Comfort Partners.