Free money? Extra New Jersey electric bill help to offset rate hikes

💡 New Jersey Board of Public Utilities approves deferrals on electric bills

💡 Other measures will help low- and moderate-income households

💡 Republicans say none of it solves New Jersey's electricity problem

New Jerseyans will get a break on their electric bills this summer when the heat is sweltering and the air conditioners are straining to keep homes and businesses cool.

However, most residents will still be on the hook later this year.

On Wednesday, the New Jersey Board of Public Utilities approved a deferral program and several other measures to help people deal with recent massive rate hikes — bills went up by nearly 20% on June 1.

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The deferral includes customers of the four major utilities in New Jersey: JCP&L, PSE&G, Atlantic City Electric, and Rockland Electric Company.

“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,” Gov. Phil Murphy said.

ALSO SEE: How AI data centers are fueling electric rate increases in NJ

Deferral for New Jersey electric bills this summer

The deferral program for New Jersey ratepayers will shave $30 from their bills in July and August, saving $60 total during those months.

The aim is to lower bills when energy usage is at its highest.

However, that money must be paid back in the following six months.

Utilities will then increase bills by $10 monthly from September through February. And rates likely won't be any lower next summer.

"The utility mitigation plans are just another tool at our disposal to help ratepayers in the short-term, on top of the historic relief announced earlier this month and ensure people don't need to choose between paying their energy bills and other expenses this summer," BPU President Christine Guhl-Sadovy said.

On June 5, the Murphy administration announced that $100 would be deducted from bills for all ratepayers. Those deductions would be spread from July to December.

New Jersey Republicans see the deferrals as "sleight of hand" during an election year.

“The latest move by the BPU to delay utility rate hikes until after the summer might buy them time politically, but it does absolutely nothing to address the underlying issue: New Jersey doesn't have enough energy generation to meet demand," State Sen. Anthony Bucco, R-Morris, said.

Other measures to lower electric bills for New Jersey households

The BPU also approved several other ways to help deal with the massive rate hikes that will increase bills, on average, by between $22.67 and $28.02 each month.

Utility shut-off protection, which usually helps people during winter, will apply this summer through Sept. 30.

Another measure includes a $25 monthly credit for low- and moderate-income households through the Residential Energy Assistance Payment Initiative. The credit will be given from August through February.

Expansion of the New Jersey Universal Service Fund

The state's Universal Service Fund will also give out more money, which the BPU estimates will help around 144,000 households.

The changes will take effect on Oct. 1.

Most of those households — around 136,000 — will benefit from the minimum monthly credit for electric and gas bills increasing from $5 to $20.

The maximum monthly credit will also increase from $180 to $200.

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