New Jersey Residents Face Shocking Electric Bills Amid Rate Hikes and Heatwave

the staff of the Ridgewood blog

Ridgewood NJ, New Jersey residents have been bracing for higher electric bills since the state Board of Public Utilities approved rate hikes back in February. Now, the first bills reflecting those increased power rates have arrived, and homeowners are finding the change, in a word, shocking.

Rate Increases and the Summer Heat

The base rate increases approved by the state ranged from about 3% to 9% and took effect on June 1. However, this coincided with an exceptionally hot month that ended up being the second-warmest June in New Jersey history. After an unusually cool June in 2023, the year-over-year comparison has been eye-opening for many residents.

“I have JCP&L and my bill is $782????” exclaimed a Parsippany resident on a local Facebook page. “Can this be right? I have an average-sized house!!!”

“Mine was the same,” another poster responded. “It went from $149 to $495. The months before we [were] all around $150 to $160.”

“Jumped so high,” another JCP&L ratepayer lamented. “But my air has been on nonstop because of the heat.”

The Double Whammy Effect

Underlying rates didn’t double or triple, but the combination of a price increase and a heatwave has hit wallets hard in the Garden State.

The BPU on February 9 approved the results of the state’s annual electricity auction for PSE&G, JCP&L, Rockland Electric Co., and Atlantic City Electric. The auction sets the wholesale prices that these companies pay and then pass along to residential customers as well as small and medium-sized businesses.

Overall, these rates result in an 8.7% monthly increase for JCP&L customers using an average of 777 kWh/month, or about $10.19 per month. PSE&G estimated a 9% increase for electric customers and 12% for a typical combined residential electric and gas customer, representing an average of $25 per month.

Second-Hottest June on Record

The biggest driver in bill increases this summer is the hot, humid weather, said JCP&L spokesman Christopher Hoenig. He pointed to a Rutgers analysis that identified last month as the second-warmest June on record since 1895. The oppressive weather has extended into July.

Customers comparing their bills to one year ago should also note that temperatures for June 2023 were below average, registering as the 36th coolest June on record in New Jersey.

“Air conditioning is typically the largest power draw in your house,” Hoenig said. “How much more you spend on A/C this summer vs. last summer depends on several factors like the size and age of your house and your A/C system, and especially the efficiency of your house and A/C system. The harder your system has to work to cool your house and take the humidity out of the air, the more power it will use.”

Impact Across the State

JCP&L serves 1.1 million customers in 13 northwest New Jersey counties, including parts of Passaic, Morris, Sussex, Essex, Somerset, and Warren counties. PSE&G serves 2.4 million customers through a swath of northern and central New Jersey towns stretching from Bergen to Gloucester County.

Preparing for the Future

As residents adjust to the new rates and prepare for the rest of the summer, many are likely to seek ways to reduce their energy consumption and manage their bills. Energy-efficient appliances, better insulation, and mindful usage of air conditioning can all help mitigate the impact of these increased costs.