Residents and businesses in New Jersey will begin seeing higher electric bills this June following the latest auction overseen by state officials. The New Jersey Board of Public Utilities, in its 22nd auction, finalized monthly price increases aimed at securing the necessary power for customers across the state.
The auction results will result in an 8.6% bill increase for JCP&L customers.
The rate increase is part of a trend of rising utility bills driven by various factors. These include the state’s initiatives to electrify transportation, modernize the electric grid, and transition to cleaner energy sources like solar power.
The significant increase for residential and small commercial customers is largely attributed to the procurement system employed by the Board of Public Utilities (BPU). The BPU purchases electricity for customers who haven’t switched suppliers from their traditional utility, using a two-decade-old system. Each year, the auction determines the electricity purchase for the upcoming year starting in June, factoring in prices from the two preceding years. While this year’s price was lower than the previous year’s, it marks a 26% increase from the amount purchased in 2022. In the previous auction, prices rose between 3.3% and 6.9%.
