Six-minute read
NJ power outage: I lost power to home. What do I do in my house?
The first steps: Confirm that the power is really out by checking for tripped breakers. Then call the utility company to report the outage.
- New Jersey electricity customers will see their bills rise on June 1 due to increased wholesale electricity prices.
- JCP&L and Atlantic City Electric have proposed additional rate increases to fund infrastructure improvements, which are pending regulatory approval.
- The New Jersey Board of Public Utilities is exploring options to provide bill credits to help customers cope with the rising energy costs.
Yes, your electric bill is expected to rise on June 1 as higher wholesale electricity prices kick in.
But customers of Jersey Central Power & Light and Atlantic City Electric may see even higher bills later as state regulators evaluate proposals from the utilities which would raise rates.
A 2023 request by JCP&L to spend $935 million on electric upgrade upgrades and improvements — the utility’s largest infrastructure project — would add 3% to monthly bills.
Atlantic City Electric, the utility that serves South Jersey, including southern Ocean County, proposed last November to collect $109 million more in rates to recoup investments to improve system reliability. If approved without changes, it would raise monthly bills by 8%.
Energy affordability is on people’s minds after the state Board of Public Utilities announced that electric bills will skyrocket on June 1 because of the rising costs of wholesale electricity.
“These high bills are not just a nuisance, they have real impacts on real lives,” said Brian O. Lipman, director of the state Division of Rate Counsel last week during a hearing by the state Senate Select Committee and the Assembly Telecommunications and Utilities Committee.
“And I am not being sensationalist when I say, people will die. Last year was one of the hottest summers in recent years,” Lipman said. “Air conditioning is no longer a luxury, it is lifesaving. Heat-related deaths will increase as we make air conditioning more unaffordable.”
What’s happening now?
New Jersey residents will pay more just before the summer starts and it’s time to crank up the air conditioner.
In the Garden State, wholesale electricity prices are determined by an annual auction in which generator companies bid to supply the state’s four electric utilities with power. Those prices are passed directly through to all residential customers and small businesses who have not chosen a third-party electric supplier.
Monthly electric bills will see increases that range from 17.23% for Atlantic City Electric customers to a 20.2% increase for Jersey Central Power & Light customers.
“These increases are a significant concern to me,” said Christine Guhl-Sadovy, president of the New Jersey Board of Public Utilities, at the legislative hearing. “We take this really seriously, all of us at the BPU. No one wants to see these kinds of impacts on ratepayers, especially at a time when there’s so much uncertainty around the nation’s economy.”
The price jump is attributed in part to rapidly increasing demand for electricity, coupled with limited supply growth in the region due to a backlog of electric generation projects that are waiting to be connected to PJM Interconnection, the regional electric transmission grid operator, Guhl-Sadovy said. In New Jersey alone, there are 79 projects, primarily solar and storage.
JCP&L infrastructure project under review
In November 2023, JCP&L unveiled Energize NJ, its largest project ever to upgrade the utility’s electric distribution system, the network of wires, devices and transformers that bring electricity to its customers.
JCP&L said it wanted to pump $935 million into its electric infrastructure across its 13-county service area in New Jersey, including Monmouth and Ocean counties.
The work includes heavier overhead wires and stronger utility poles and upgrades to substations and circuits to make it easier to turn the lights on after an outage.
If approved as proposed, bill increases for a typical customer would be implemented over five and a half years, with increases of 17 cents to 89 cents a month. At the end of the phase-in, customers will have seen a total increase of $4.07, or 3%, on their monthly electric bill, according to a public notice.
The project is still under review by the BPU.
JCP&L is working towards a “resolution that allows for continued, targeted investments in our infrastructure,” a utility spokesperson said.
“We recognize that the upcoming supply rate increases are a concern for our customers, as are any increases in bills,” spokesperson Chris Hoenig said in a statement.
“Our commitment to our customers includes providing them with the information and tools they need to manage their electric use and bills, while investing in our grid to provide the safe, reliable power they deserve.”
Atlantic City Electric’s rate case
Atlantic City Electric says its proposal to raise rates by $109 million would help it recoup costs for various infrastructure improvements, including the installation of a battery storage system in Beach Haven to improve energy service, and the installation of smart meters.
Other projects include modernizing substations in Atlantic City and Cape May.
If approved as proposed, the monthly bill of a typical Atlantic City Electric customer would go up $12.96 or 8.08%.
“The base rate case filing with the BPU supports our investments in the local energy grid to enhance and modernize the grid which is essential to providing our customers with the level of service they have come to expect,” spokesperson Frank Tedesco said in a statement.
“Ongoing investments to build a smarter, stronger and cleaner energy grid support a 41% decrease in outages over the past 10 years.”
Bill credits to recoup higher energy costs?
The BPU’s Guhl-Sadovy said the state will try to help consumers hit hard by higher energy costs, including issuing bill credits.
“While the NJBPU has no authority over the generation-related increases, we are committed to helping New Jersey consumers navigate this challenging environment and suggest ways to offset costs where possible,” Guhl-Sadovy said.
For instance, the board is reviewing next year’s budget as well as other available clean energy funds to give a bill credit to all residential customers over the summer when bill increases take effect and costs are highest, Guhl-Sadovy said. “We don’t know how much that’s going to be yet, but we are working to get as many financial resources as possible together to provide that bill credit.”
The BPU also is proposing to provide a $175 bill credit to more than 278,000 income-eligible families who are enrolled in the winter termination program, which prevents shut-offs between Nov. 15 and March 15.
“Both these actions will help offset some of the generation-related bill increases,” Guhl-Sadovy said.
David P. Willis, an award-winning business writer, has covered business, retail, real estate, utility, and consumer news at the Asbury Park Press for 27 years. He writes APP.com’s What’s Going There column and can be reached at dwillis@gannettnj.com. Please sign up for his weekly newsletter and join his What’s Going There page on Facebook for updates.