After a summer of record heat where New Jersey residents saw a spike in their electric bills, there has been bipartisan calls for hearings on why costs were so high and what can be done in the future.
New Jersey Board of Public Utilities President Christine Guhl-Sadovy previously forecasted “moderate” increases in consumer’s electric bills following this year’s Base Generation Services auctions, which provides utility companies with electricity produced outside of New Jersey that is then distributed to customers.
These new rates went into effect June 1, board of public utilities officials said. Consumer’s monthly bills were expected to increase an average of 3.6% for Rockland Electric customers, 4.6% for Atlantic City Electric customers, 6.2% for PSE&G customers and 8.6% for Jersey Central Power & Light customers.
Mays Landing resident Rich Timinski said he dreads going to the mailbox to get his Atlantic City Electric bill, saying this summer he watched it increase from $300 on average to about $500.
“It can’t be what they expect people to pay,” Timinski, 41, said. “I’m afraid this is going to be the norm now.”
Between June and July, two of the summer’s hottest months, the Atlantic City Electric’s residential customers used 20% more electricity compared to 2023, Atlantic City Electric said in a statement.
“We recognize our customers’ concerns and the economic challenges so many are facing right now,” Atlantic City Electric, a subsidiary of Chicago-based energy giant Exelon, wrote in the statement. “We will continue to work with local officials to ensure we are meeting the energy needs of our customers and to understand the factors contributing to rising energy costs.”
Soaring energy bills appear to not be limited to New Jersey. A poll from The Associated Press-NORC Center for Public Affairs Research showed seven in 10 Americans say in the last year extreme heat has had an impact on their energy costs, ranging from minor to major, and most have seen at least a minor impact on their outdoor activities.
Concerns over the increasing cost of electricity has caught the attention of lawmakers. A joint letter from New Jersey Democrats in the state’s 3rd, 4th and 8th legislative districts asked for a hearing this fall with the New Jersey Board of Public Utilities.
“The reality is that the unexpected increases have caused stress and anxiety for many,” it was stated in the letter. “We know that 37% of Americans cannot afford an emergency expense over $400, according to Empower research.”
U.S. Rep. Jeff Van Drew, R-2nd Dist., urged state officials to investigate if smart meter installations are to blame. He also called for moratoriums on utility shut-offs and further rate increases.
“Over the past few months, my office has compiled substantial data from thousands of residents, which indicate that their energy bills have sometimes tripled compared to the same period last summer,” Van Drew wrote in a letter. “Such increases, especially at a time of severe economic hardship on nearly all expenses, are unacceptable and have placed an undue financial burden on many families in our community.”
State Democrats in the 3rd district on Monday announced intentions to introduce a bill in the New Jersey Legislature requiring that energy providers warn customers when their electric use spikes.
“This would be a proactive, user-friendly program that alerts consumers of their energy use so they aren’t caught by surprise with exorbitant bills at the end of the month,” said Sen. John Burzichelli, D-3rd Dist. “It would provide real-time information that allows customers to manage their energy consumption and control costs.”
Timinski said he, his wife and their two children moved from Belleville in Essex County last year because of the high cost of living in North Jersey. Their two-story home has central air conditioning and last fall, the electric bill averaged $100 per month. That increased to $300 before the summer, spiking at $500 during the recent heat waves.
For the Timinski’s, it meant reducing other expenses, cutting back on buying groceries and cancelled a planned family vacation in Wildwood.
“It’s not sustainable for middle-class families,” Timinski said. “They keep picking at everyone as much as possible.”
The New Jersey Board of Public Utilities, in a statement to NJ Advance Media, said consumers can anticipate when their electric bills will increase by comparing their usage from month-to-month and year-to-year.
State officials are also encouraging to customers to report meter discrepancies and look into programs that help cover utility costs.
Gov. Phil Murphy’s administration late last month announced the start to the Residential Energy Assistance Payment program for the September billing cycle. A one-time, $175 credit is planned to be issued to approximately 278,000 qualifying residential ratepayers on their electric or gas bills.
The administration said those eligible include customers who qualified for New Jersey’s winter utility shutoff moratorium. Others include those experiencing financial hardships.
The Associated Press contributed to this report.
Stories by Eric Conklin
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Eric Conklin may be reached at econklin@njadvancemedia.com.