NJ electricity bills soared for some customers in June. Here’s why

On Jul 26, 2024

New Jersey residents have been bracing for higher electric bills since the state Board of Public Utilities approved rate hikes back in February.

Now the first bills reflecting those power rates have arrived, and homeowners are finding the change, in a word, shocking.

The base rate increases approved by the state ranged from about 3% to 9% and took effect on June 1. But that was the start of a hot, steamy month that ended up the second-warmest June in New Jersey history. And after an unusually cool June in 2023, the year-over-year comparison has been eye-opening.

“I have JCP&L and my bill is $782????” demanded one Parsippany resident on a local town page on Facebook. “Can this be right? I have an average-sized house!!!”

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“Mine was the same,” another poster responded. “It went from $149 to $495. The months before we [were] all around $150 to $160.”

“Jumped so high,” another JCP&L ratepayer lamented. “But my air has been on nonstop because of the heat.”

Double whammy for NJ electric bills

Underlying rates didn’t double or triple, but the double whammy of a price increase and heat wave has hit wallets hard in the Garden State.

The BPU on Feb. 9 approved the results of the state’s annual electricity auction for PSE&G, JCP&L, Rockland Electric Co. and Atlantic City Electric. The auction sets the wholesale prices that the companies pay and then pass along to residential customers as well as small and medium-sized businesses.

Overall, those rates will result in an 8.7% monthly increase for JCP&L customers using an average of 777 kWh/month, or about $10.19 per month. PSE&G estimated a 9% increase for electric customers and 12% for a typical combined residential electric and gas customer, representing an average of $25 per month.

But last month was far from average.

More:With inflation cooling, is air conditioning any cheaper in NJ right now? See average costs

Second-hottest June on record

The biggest driver in bill increases so far this summer is the hot, humid weather, said JCP&L spokesman Christopher Hoenig. He pointed to a Rutgers analysis that identified last month as the second-warmest June on record since 1895. The oppressive weather has extended into July.

Customers comparing their bills to one year ago should also note that temperatures for June 2023 were below average, registering as the 36th coolest June on record in New Jersey.

“Air conditioning is typically the largest power draw in your house.,”Hoenig said. “How much more you spend on A-C this summer vs. last summer depends on several factors like the size and age of your house and your A-C system, and especially the efficiency of your house and A-C system.

“The harder your system has to work to cool your house and take the humidity out of the air, the more power it will use,” Hoenig continued.

JCP&L serves 1.1 million customers in 13 northwest New Jersey counties, including parts of Passaic, Morris, Sussex, Essex, Somerset and Warren counties. PSE&G serves 2.4 million customers through a swath of northern and central New Jersey towns stretching from Bergen to Gloucester County.

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Tips to save on energy bills

Hoenig offered the following suggestions for customers to “take control of their energy use”

Use fans, as moving air cools skin faster, resulting in greater comfort on hot days. However, remember to turn fans off when you leave the area: “Fans cool people, not rooms.”
During sunny weather, close drapes or blinds on windows facing the sun to prevent direct radiant heating from impacting interior temperatures.
Use a programmable or smart thermostat to keep temperatures higher when no one is home and to reduce the temperature before arrival back home.
Seal any leaks with caulk or weather stripping to prevent hot air from sneaking into your home.
Check air conditioner and furnace fan filters. Clogged filters waste energy and money by forcing HVAC systems to work harder than necessary.
Avoid using heat-producing appliances during the hottest hours of the day. The less heat produced at home, the less work the air conditioner must do.

How to switch electric utilities

Customers can also investigate competitive energy suppliers that may provide savings to certain customers.

To check out your energy options, consider these steps, as outlined by JCP&L:

Locate the Basic Generation Service (BGS) charge on your bill (located in Sections G&H; JCP&L provides a sample bill online that can help.) This is the generation charge you’ll use to compare against other offers.
Visit the BPU’s NJ Power Switch website for a list of licensed suppliers and their current rates. If you find a supplier with a generation rate lower than the current BGS, you may be able to pay less.
When choosing a competitive supplier, consider all terms carefully, including price, plan structure (fixed or variable rate), contract terms and any applicable taxes, charges and fees.

Payment assistance programs

New Jersey also provides payment assistance programs, including help for seniors, people with disabilities and those who meet income eligibility standards. Information is available through the state Department of Community Affairs’ energy page as well as on utility websites.

Read More: NJ electricity bills soared for some customers in June. Here’s why

2024-07-26 15:58:02