New Jersey Electricity Prices Surge Following Rate-Setting Auctions
Electricity costs are about to get steeper for New Jersey residents, with monthly bills expected to rise by more than $25 starting in June. The price hike follows back-to-back rate-setting auctions that saw supply costs climb, fueled by growing demand and limited availability.
The New Jersey Board of Public Utilities (BPU) approved the latest auction results on Wednesday, cementing higher costs for customers across the state. Utility companies, which are required to pass supply costs directly to consumers without profit, are bracing for the shift.
What’s Behind the Increase?
Two major factors have pushed prices up: surging demand and constrained supply. Christine Guhl-Sadovy, president of the BPU, acknowledged the financial strain but emphasized the board’s commitment to keeping rates in check.
“No one likes to see bill increases,” she said. “We understand that, and we are committed to doing everything we can at this department to ensure we’re keeping prices as low as possible.”
New Jersey’s annual electricity auctions determine supply rates for the state’s major utilities, impacting millions of ratepayers. While utilities themselves don’t profit from the energy supply, the price fluctuations from these auctions directly affect customer bills.
How Much More Will Customers Pay?
The increase will vary by provider, but on average, residential customers using about 650 kilowatt-hours per month will see their bills jump by at least $22.67 and as much as $28.02.
- Jersey Central Power & Light (JCP&L) customers will face the smallest increase.
- Atlantic City Electric customers will see the highest spike.
- PSE&G customers can expect an increase of $26.87 per month.
- Rockland Electric ratepayers will see bills rise by $25.48.
Rate Counsel Brian Lipman, who advocates for consumers in utility matters, confirmed the estimated hikes, cautioning that they could place additional strain on households already dealing with inflation and other rising costs.
What’s Next for Ratepayers?
The price changes take effect on June 1, just as summer temperatures drive up energy use. Customers looking to mitigate the impact may need to explore energy-saving measures such as reducing peak-hour consumption, upgrading to more efficient appliances, or considering solar and alternative energy sources.
While the auctions are an annual event, the latest results highlight ongoing volatility in energy markets. Future adjustments will depend on supply trends, regulatory decisions, and shifts in consumer demand.
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