The New Jersey Board of Public Utilities (NJBPU) ordered New Jersey’s four electric distribution companies (EDCs) to file petitions providing distribution side proposals to mitigate overall bill impacts to residential customers during high usage summer months. The customer cost mitigation plans will include but are not limited to proposals to defer rate impacts to lower usage months and other opportunities to provide rate stabilization and savings where possible. The Board set a deadline for the EDCs to file the petitions on or before May 5, 2025.
“Despite big-picture concerns with the electricity market, my Administration is focused on immediate solutions to the PJM cost crisis and doing everything in our power to offer relief to families and businesses, including working with our EDC partners to provide plans to ease costs,” said Governor Phil Murphy.
“Today’s actions ordering the EDCs to develop cost mitigation plans demonstrate the Board’s commitment to helping manage costs and put affordability within reach for more families,” said NJBPU President Christine Guhl-Sadovy. “While some progress has been made by PJM to fix its flawed market rules, more remains to be done, and the pace of positive change is not swift enough to benefit electric customers facing rising rates.”
Guhl-Sadovy continued, “While we continue to advocate with the Governor at PJM and the Federal Energy Regulatory Commission, the Board is here to help as we are exploring all options to mitigate the shock of the PJM-related cost increases that go into effect June 1.”
Capacity market prices make their way to customers’ bills in part through the state’s annual Basic Generation Service (BGS) auctions. The Board’s authority over the auctions is limited and does not extend to influence pricing. As a result of the 2024 PJM Base Residual Auction (BRA) and the 2025 BGS auctions, the projected average monthly customer bill increases, beginning June 1, 2025, range from 17.23% to 20.20%, depending on the EDC service territory where the customer resides.
The Murphy Administration is committed to ensuring energy affordability for all ratepayers and helping ratepayers navigate this challenging environment. If you or someone you know needs assistance with their energy bills, contact the NJBPU before you are faced with a service disruption. The NJBPU is here to help.
Last year, New Jersey’s energy assistance programs provided approximately $295 million in assistance to more than 455,000 families. Additionally, the Board unveiled the Residential Energy Assistance Payment (REAP) initiative, which disbursed over $48.7 million via a one-time $175 bill credit for over 278,000 qualifying households.
To build on the significant cost savings delivered by NJBPU’s REAP initiative, the Board approved a second Residential Energy Assistance Payment at the Agenda meeting on April 23, 2025 via the Fiscal Year 2025 New Jersey Clean Energy Fund true-up budget.
Furthermore, on March 20, 2025, the Board released a Straw Proposal to expand the Universal Service Fund (USF) program. That is a bill credit program open to customers who are at or below 60% of the state median income. For a family of four that’s approximately $92,000 a year. The USF Straw Proposal seeks to increase the amount of bill assistance, primarily for customers at the higher income end of eligibility, and to require the utilities to meet certain enrollment obligations to ensure available resources are reaching those who qualify.
In addition to direct bill credits and expansion of USF, the Board also opened the next Community Solar Energy Program (CSEP) allocation at the April 23, 2025 Agenda Meeting. CSEP is not exclusive to low- and moderate-income residents; it is available to homeowners and renters without having to install solar on your roof. CSEP is one of the most effective and quickest ways to reduce energy bills. Community solar subscribers receive guaranteed savings for participating in the CSEP with discounts of 15% or more on community solar credits applied to their bills. CSEP currently serves more than 28,000 New Jersey subscribers, who have received more than $37 million in bill credits with net savings of more than $7 million since the start of the pilot program. Opening an additional capacity block of 250 megawatts is key to helping put affordability within reach for more New Jersey ratepayers.
The State also has a significant portfolio of energy efficiency programs run by the utilities. The first cycle of these programs has already saved customers $600 million, and savings will continue to accrue throughout the life of the installed measures. As important as customer savings from participation, these programs reduce electricity demand, which drives down capacity costs. As part of the Clean Energy Act, passed by this legislature and signed by the Governor in 2018, the utilities are required to reduce demand by 2% annually.
Finally, there are several assistance programs available for utility customers: Universal Service Fund, Fresh Start Program, Payment Assistance for Gas and Electric (PAGE) Program, Low Income Home Energy Assistance Program, Lifeline, NJ Shares, and NJ Comfort Partners. Additionally, the Winter Termination Program is a utility-led program that protects qualifying ratepayers from service disruption during the winter months from November 15 until March 15. A more detailed description of these programs, as well as the requirements and guidelines can be found on the NJBPU’s website at BPU Assistance Programs.
