Shocking new electric bills in NJ: How one utility is trying to help

💲Electric rates jumped at least 17% for New Jersey customers June 1

💲PSE&G announced its "Summer Relief Initiative" to assist customers

💲It has filed with the BPU to delay its implementation until fall

As New Jersey residents prepare for the sticker shock of a 17% increase in utility rates as summer heat arrives, one utility is taking steps to help its customers, including a delay in its implementation.

The Board of Public Utilities approved rate hikes ranging from 17.23% to 20.2%  for customers of the state's major utilties: Jersey Central Power & Light, PSE&G, Atlantic City Electric and Rockland Electric Company. That's more than double any of last year's increases.

In announcing its Summer Relief Initiative, PSE&G said the hikes aren't their fault.

"We actually receive our electric supply through PJM and as a result of that, it's a direct pass through to our customers," PSE&G Chief Customer Experience Officer Dave Johnson told New Jersey 101.5.

PJM coordinates the flow of electricity through all or parts of 13 states and the District of Columbia, and it ensures the wholesale electricity transmission system operates reliably and safely. New Jersey electric utilities then distribute this wholesale electricity to retail customers, including homeowners and renters. This requirement is met using a market called a “capacity auction” in which electricity suppliers bid to provide physical infrastructure that will generate electricity in the future.

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Three steps

Johnson says PSE&G is taking three steps to help its customers through the increase.

Summer moratorium on service terminations: Like its winter termination program, the utility will suspend shut-offs for low-income and qualified individuals between July 1 and Sept. 30, which are the hottest months of the year. Increased air conditioner use drives up usage.  The amount of electricity needed to cool your house to 75 degrees when it’s 90 degrees outside is 125% higher than when it’s 85 degrees outside.

"It's for customers who are dealing with financial hardships, may have medical conditions or have received some kind of public assistance in the past. And if a customer is unsure, we ask them to reach out to us at 800-436-PSEG, or they can connect with us via our website@pscg.com," Johnson said.

Delay implementation of the increase: PSE&G has filed an application with the BPU to defer the June 1 increase through the summer.

"We've put an application into the BPU to provide a deferral of these increased supply charges through the summer months, temporarily defer them until the fall, where the electric usage begins to taper down, and that would provide customers with additional relief throughout the summer to deal with the higher electric rates," Johnson said.

The BPU's next meeting is scheduled for June 18. An agenda has not been posted.The utility has also applied for bill credits that it could apply to bills to help offset the increases.

Reconnection fee suspension: The utility suspended its $45 reconnection fee charged when service is disconnected.

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Other plans already in place

Johnson said PSE&G already offers a balanced bill program, the Equal Payment Plan, which allows enrolled customers to have their bill levelized. That takes their average usage from the previous 12 months and estimates likely usage over the upcoming 12 months.

"We'll do a reconciliation just to sync up, to see whether or not there's an adjustment that's needed,"  Johnson said.

Through their energy efficiency programs, PSE&G will also help their customers determine ways to decrease their use by implementing energy efficiency tactics like replacing air filters, adjusting thermostat settings and replacing drafty windows.

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