Utilities Commit to Mitigate Rate Impacts this Summer

On Jun 19, 2025

In its efforts to combat the up to 20% increase in energy costs that went into effect on June 1, the New Jersey Board of Public Utilities (NJBPU) yesterday approved stipulations with New Jersey’s four electric distribution companies (EDCs): Public Service Electric and Gas (PSE&G), Jersey Central Power and Light (JCP&L), Atlantic City Electric (ACE), and Rockland Electric Company (RECO) to help mitigate overall bill impacts during high usage summer months.  Cost mitigation plans will include interest-free rate deferrals for all investor-owned utility residential electric customers.

“I am grateful to our electric distribution companies for coming to the table to provide plans to ease costs for consumers and committing to being part of the solution to the current utility cost crisis created by PJM,” said Gov. Phil Murphy. “My administration is focused on immediate solutions despite big-picture concerns, and we are going to continue working with our EDC partners to offer relief to families and businesses struggling to afford increased utility costs.”

The agreement from the EDCs includes two automatic $30 bill reductions during high usage months of July and August. The $60 of deferred costs will be recovered monthly on customer bills over the following six months, from September to February. The deferral will reduce electricity bills in peak summer months, helping to smooth out the additional costs of supply-related rate increases. The deferral will not cause customers to pay more than what they would have originally paid.

Additionally, the state’s four EDCs agreed to suspend shut offs for nonpayment from July to September for eligible customers and will waive reconnection fees.

“While utilities like PSE&G are not responsible for the rate increases that took effect earlier this month, we are pleased to work with Governor Murphy, the Legislature and the BPU to develop measures to mitigate the immediate impact of higher electricity costs for our customers,” said Kim Hanemann, president and COO, PSE&G. “As we deliver immediate relief for customers, now is the time for further collaboration to deliver long-term solutions to address the power generation supply imbalance in the state, including the development of a strategic, thoughtful integrated system plan to meet New Jersey’s future energy needs.”

“JCP&L doesn’t control increasing supply costs, and neither do our customers. These measures, developed with the BPU and our peer electric companies, reinforce our commitment to helping New Jersey families,” said Doug Mokoid, FirstEnergy’s president, New Jersey. “They complement our year-round energy efficiency and bill assistance programs that help our customers take control of their energy use.”

“At Atlantic City Electric, we recognize that rising energy costs—especially during the high-usage summer months—pose real challenges for our customers,” said Amber Perry, vice president of regulatory policy and strategy at Atlantic City Electric. “This announcement reflects our ongoing commitment to work collaboratively with the Board and other utilities to deliver meaningful relief. We remain focused on advancing solutions that support New Jersey’s growing energy needs while helping customers manage their bills and energy use more effectively.”

“Rockland Electric Company (RECO) is proud to work with the NJBPU, the New Jersey Division of Rate Counsel and the other New Jersey electric utilities on these efforts to mitigate bill impacts for our customers during peak summer months,” said Michele O’Connell, Rockland Electric Company President and CEO.  “As RECO continues to actively invest in our electric grid to enhance its reliability, we understand the financial pressures that many are facing. This partnership with the state to implement new ways to help alleviate these burdens for all customers, particularly our most vulnerable populations, is an incredible opportunity.”

This announcement comes on the heels of the Murphy Administration’s $430 million direct bill assistance announcement on June 5 that will deliver at least $100 of relief to all ratepayers, and up to $250 for qualifying low-moderate income ratepayers, which will more than offset the repayment for the deferral. Today’s actions, accompanied by the rate relief package, represent components of the state’s approach to help ratepayers navigate price increases this summer driven by the PJM price spike.

Murphy blamed the PJM Interconnection, which manages the flow of power within a 13-state region, for the spikes, saying it has failed to increase energy capacity, especially from clean energy sources.

Ray Cantor, deputy chief government affairs officer at the New Jersey Business & Industry Association, commented that while some criticisms toward PJM may be fair, what is not discussed is the role that New Jersey’s energy policy decisions have played in the energy price increases of today.

“The administration pushed policies that drove up the use of electricity and adopted policies that shut down generation and discouraged the development of clean natural gas facilities and other alternatives such as renewable natural gas,” Cantor said.

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