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Retail Energy Regulator Orders Utilities To Mitigate Summer Energy Rates Due To Spike In PJM Capacity Prices
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The New Jersey BPU has ordered the state's electric utilities to, "file petitions with the Board providing
distribution side proposals to mitigate bill impacts to residential customers during high usage
summer months."
What the BPU ultimately means by "distribution side" remains to be seen, particularly as the board further said, "The proposals shall include, but not be limited to, proposals to defer those
impacts [bill impacts to residential customers during high usage
summer months], and shall include supporting calculations."
New Jersey Governor Phil Murphy said in a news release that, "Despite big-picture concerns with the electricity market, my Administration is focused on immediate solutions to the PJM cost crisis and doing everything in our power to offer relief to families and businesses, including working with our EDC partners to provide plans to ease costs." [emphasis added]
NJBPU President Christine Guhl-Sadovy said, "While we continue to advocate with the Governor at PJM and the Federal Energy Regulatory Commission, the Board is here to help as we are exploring all options to mitigate the shock of the PJM-related cost increases that go into effect June 1." [emphasis added]
The BPU said that, based upon the Board-certified results from the 2025 BGS auction, the
projected average monthly customer bill increases, beginning June 1, 2025, range from 17.23%
to 20.20%, depending on the EDC service territory.
"These price increases
largely stem from the July 2024 PJM Base Residual Auction," the BPU said
The BPU said that its authority over the BGS auctions is limited to certifying the results as consistent with market
conditions and does not extend to influence pricing
However, the BPU said, "The Board is responsible for ensuring that all regulated utility rates are just and reasonable.
While the auction results were certified as consistent with market conditions, the Board remains
concerned about the total bill impact starting June 1, 2025, particularly for residential customers."
Docket EX25040210
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Gov. Says State Will Do "Everything In Our Power" To Offer Rate Relief
April 23, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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