New Jersey regulators are taking action to soften the impact of impending cost increases related to PJM Interconnection, ordering the state’s four electric distribution companies to submit plans for customer cost mitigation by May 5th. These plans should address bill impacts for residential customers, particularly during peak summer months, and explore opportunities for rate stabilization and savings. Governor Phil Murphy emphasized his administration’s focus on immediate relief for families and businesses facing this PJM-related crisis.

The anticipated bill increases, effective June 1st, are projected to range from 17.2% to 20.2% depending on the specific service area, stemming from the 2024 PJM Base Residual Auction (BRA) and the 2025 Basic Generation Service (BGS) auctions. While acknowledging some progress in addressing flaws within PJM’s market rules, officials noted the pace of improvement is insufficient. The NJBPU stated its authority over BGS auctions is limited and cannot directly influence pricing.

To provide immediate assistance, the New Jersey Board of Public Utilities has already implemented the Residential Energy Assistance Payment (REAP) initiative, distributing over $48.7 million in one-time bill credits to over 278,000 households. A second REAP round has been approved through the New Jersey Clean Energy Fund. The board also announced the opening of another allocation for the Community Solar Energy Program (CSEP), which aims to provide energy savings to homeowners and renters, offering discounts of 15% or more on community solar credits. CSEP currently benefits over 28,000 subscribers, generating more than $37 million in bill credits and over $7 million in net savings. An additional 250 megawatts of capacity is planned to further enhance affordability for New Jersey ratepayers.