New Jersey regulators weigh utility bid to raise home electric bills 8.8% and delay the impact

New Jersey residents served by Jersey Central Power & Light may eventually see their electric bills rise. The utility is asking state regulators to sign off on higher rates and the recovery of hundreds of millions of dollars in storm-related costs.

What's happening?

According to ROI NJ, Jersey Central Power & Light, a division of First Energy Corporation, has filed a proposal with the New Jersey Board of Public Utilities that would ultimately increase residential bills by about 8.8%.

FirstEnergy said, according to ROI NJ, that the filing would raise the typical customer's bill by about 8.5% overall, with residential customers seeing a slightly larger 8.8% increase. The request includes a $253 million boost to base distribution rates along with a separate effort to recover $476 million in deferred storm costs.

For a residential customer who uses 767 kilowatt-hours per month and currently pays $162.30, the proposal would mean an added $14.23 a month. The new base distribution rates would take effect on May 6, 2027, but offsets are intended to keep residential customers from feeling that increase until January 2028.

Why does it matter?

The proposal would add two costs to customer bills: a base rate increase and, starting in January 2028, a separate charge to repay nearly $476 million in deferred storm expenses. FirstEnergy said spreading that recovery over 10 years would lower the immediate impact, even though the cost would remain in place longer.

FirstEnergy also pointed to JCP&L's $1.5 billion in capital spending and cited more frequent severe storms as part of the reason for the request.

What's being done?

Rather than having residential customers absorb the change as soon as the base distribution rates begin in May 2027, JCP&L's plan would use offsets so the increase would not show up for them until January 2028.

The company is also seeking to stretch storm-cost recovery across 10 years instead of collecting that money over a shorter period.

The New Jersey Board of Public Utilities must still review the proposal before anything takes effect.

ROI NJ reported that Doug Mokoid, FirstEnergy president of New Jersey, defended the filing by saying, "Customers shouldn't have to choose between affordability and reliability. Our balanced approach puts both front-and-center simultaneously by minimizing the impact on bills today and giving customers time to plan, while continuing to invest in the infrastructure needed to deliver safe, reliable service for generations to come."

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.