New bill looks to fight NJ electricity cost hikes

⚡ Electric rates set to skyrocket by at least 17% in June

⚡ New bill would stop utilities from passing on cost of new smart meters

⚡ Lawmakers also want more transparency from electric companies

A group of New Jersey lawmakers wants to help homes and businesses facing massive electric rate hikes.

The bill unveiled on Tuesday follows last week's announcement from the New Jersey Board of Public Utilities that monthly bills will increase by up to 20.20% on June 1.

One bill would stop utilities from charging customers to make up the cost of installing new smart meters.

New Jersey utilities have been rolling out smart meters for several years. They say smart meters will let customers track their electricity usage more effectively while allowing utilities to respond to outages quickly.

READ MORE: NJ electricity rates to skyrocket by 20%

PSE&G customers who opt out of having a smart meter installed are charged $12 a month. The monthly opt-out fee for JCP&L customers is higher at $15.

Now, three Republicans from Ocean County want to stop utilities from also charging ratepayers who have smart meters.

The concern is that utilities are installing smart meters and then passing along the cost of installation to their customers.

Utilities have previously denied any correlation between higher energy costs and smart meters.

The sister bills (S-4096 and A-5299) would allow the New Jersey Board of Public Utilities to fine utilities if it's found they are passing that cost along to ratepayers.

The bill would also stop utilities from disconnecting service to customers who can't pay their bills within six months of a hike of 5% or more.

Still, some residents have reported spikes in their electric bills since their smart meters were installed, according to Senator Carmen Amato, Jr., Assemblyman Brian Rumpf and Assemblyman Gregory Myhre.

The lawmakers also called for a freeze on rate hikes in a joint statement.

"Meanwhile, our Delegation is ready and willing to work in a bipartisan manner to enact legislative initiatives to control, to the greatest extent possible, utility costs as the current situation has become dire for many," they said.

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