NJ ordering utilities to hide shocking price hikes before the election

⚡BPU ordered all utilities to file a deferrment plan

⚡PSE&G was the first to file and announce a plan on Tuesday

⚡The deferral will be in effect July 1-Sept. 30 once the BPU approves the plans

UPDATE: Murphy announces electric bill rate discount for all NJ residents

New Jersey's utilities will defer a massive increase in the cost of electricity until the fall under orders from the Board of Public Utilities.

Documents filed with the BPU show that the regulatory agency ordered JCP&L, PSE&G and Atlantic City Electric to come up with a rate mitigation plan to be in effect between July 1 and Sept. 30. Customers are facing increases as high as 20%.

The deferral would ease the burden on rate payers in the months leading up to a hotly contested gubernatorial election in which Democrats, who control all branches of state government, could end up facing the most heat.

PSE&G announced its deferral on Tuesday and said it expected a decision from the BPU after it meets on July 18.

The deferral would will offer some rate relief during one of the most expensive times of the year when air conditioning is needed for the summer heat. Customers will still have to pay the increases that took effect on June 1 but not until fall, when usage drops in the cooler weather.

In effect, the deferral will operate much like the utilities' optional equal payment plans, which average out a customer's bill based on the previous 12 months of usage so that the customer doesn't experience the seasonal spikes.

ALSO READ: Shocking new electric bills in NJ: how one utility is trying to help

Utilities 'working collaboratively'

Atlantic City Electric spokesman Brian Ahearns told New Jersey 101.5 that his utility does not have a finalized proposal for the Board of Public Utilities but that other utilities are working collaboratively with BPU staff on a proposal to "manage bill impacts while supporting the area’s growing energy needs.”

“While utility companies in New Jersey do not generate their own energy, do not set the price of electricity, and do not profit from these increases, we understand that rising costs stemming from PJM’s 2024 capacity auction are a challenge for our customers, and we share the board’s concerns on affordability as we head into the summer months where energy use typically increases,” Aherns said.

Rep. Jeff Van Drew, R-N.J. 2nd District, was not excited about the deferral but said it was better than making customers pay the increased rate immediately.

The deferral does not get at the root cause of the increases, according to the Republican. He was also critical of ACE and parent company Exelon.

"Families will still have to pay the full amount, just later. New Jerseyans deserve real, long-lasting relief instead of a temporary solution," Van Drew said in a statement. "What is truly unacceptable is that Atlantic City Electric (ACE) and Exelon continue to rake in profits while passing the burden of rising costs onto hardworking families. Instead of working to lower rates, they invest in unnecessary projects like smart meters, something no one wants, which only increases their profits."

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