Here is How Much More You’ll Pay For Electricity in NJ

It is going to cost more to cool your home this summer.

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The New Jersey Board of Public Utilities (NJBPU) has granted significant rate increases to utility providers for electricity. The higher rates go into effect on June 1, 2023.

NJBPU Board President Joseph L. Fiordaliso announced the rate increases on Thursday.

• JCP&L customers will see the biggest increases, at 4.8%
• Atlantic City Electric customers will pay 4.1% more
• PSE&G customers will be hit with a bill that is 3.3% higher

Fiordaliso claimed in a statement that it will have a minimal impact, "In 2023, BGS ratepayers will experience an increase in energy costs that are generally at or below the current rate of inflation.”

That statement is somewhat misleading since inflation remains the highest it has been in decades.

The BPU estimates monthly bills will rise only between $4 and $5.50, but that is for usage of 650 kilowatt hours. Many New Jersey homes use nearly double that amount. The increases also come just as usage rises into the summer to power air conditioning units.

It will also put a strain on many New Jersey small businesses, including restaurants and manufacturers, who use significant amounts of electricity. A 3-to-5% increase in utility costs will be especially difficult to absorb when profit margins have already been squeezed by higher inflationary costs.

Generally, demand for electricity is increasing, in part due to the growing popularity of electric-powered vehicles. It has put a strain on generating capacities and New Jersey Utilities have struggled to keep up with demand.

Power is auctioned off by generators of electricity, then distributed by New Jersey's utility companies. With the price at auction rising, the NJBPU passes the higher cost on to consumers by granting rate hikes.