New Jersey’s top four electric companies will shave $60 from customers’ bills during summer’s hottest months and at a time when power is in high demand, state officials said Wednesday.
Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy agreed to a rate deferral that will help cut bill prices $30 for July and August, the New Jersey Board of Utilities announced.
But the money will have to be paid back.
The $30 will be a credit on each the July and August bills, but will be owed back in monthly $10 increments between September and February when electric use is lower.
“The deferral will not cause customers to pay more than what they would have originally paid,” the New Jersey Board of Utilities said in a news release.
Likewise, the four energy providers also agreed to refrain from shutting off power during July and August for eligible customers and waive reconnection fees, NJBPU officials said. Doing so was previously requested by Murphy as a way to help customers burdened by high costs.
“Affordability is always top of mind for the NJBPU, and today’s actions prove that we are here to help,” NJBPU President Christine Guhl-Sadovy said.
The agreement follows Gov. Phil Murphy’s previously announced plan for the state to spend $430 million to subsidize relief to all of New Jersey’s 3.9 million ratepayers, with most customers getting $100. Low-to-moderate income earners may get up to $250 for their electric bills. The logistics of that plan have not yet been announced.
“My administration is focused on immediate solutions despite big-picture concerns, and we are going to continue working with our (EDC) partners to offer relief to families and businesses struggling to afford increased utility costs,” Murphy said in a statement.
New Jerseyans have been grappling with soaring energy prices that have become a discussion point among state lawmakers. Customers are projected to see around a 20% increase in their bills after new rates were approved during the yearly energy auction process.
Last summer, many customers were distraught over high bills, and questioned why rates were so high.
Murphy previously announced other executive actions to combat high electric costs, including demands for utility providers to expand the winter power shutoff moratorium to include summer’s hottest months.
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Eric Conklin may be reached at econklin@njadvancemedia.com.
