Op-Ed – Capping Electric and Gas Rate Increases

By Margie Donlon and Luanne Peterpaul

Assemblywomen Luanne Peterpaul and Margie Donlon

We have introduced legislation to cap gas and electric utility company rate increases to residential customers to 2 percent per year.

This legislation comes in the wake of the Board of Public Utility approving results from a yearly auction process for New Jersey’s power supply. The end result is that there will be a minimum 17 percent increase in monthly electric costs for customers of the state’s top-four electric companies — Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy. The increase is expected to add $20 a month to residential utility bills when it goes into effect on June 1, just as the hot weather causes air conditioning to being run.

Our bill would prohibit the BPU from approving electric or gas public utility rate increases to no more than 2 percent annually for a residential customer. If our bill becomes law this year, it would take effect before the next electricity auction. By setting an annual cap on utility rate hikes, we can prevent sudden jumps in costs that are harder for residents to absorb and enable them to better budget for their household bills.

In November 2024, the BPU approved a nearly 16 percent rate increase for New Jersey Natural Gas customers. The rate increase was approved with the expectation it would increase average residential heating bills by $24, raising monthly winter bills from $151.62 to $175.56.

The uncertainty being created by the current administration in Washington D.C. is causing justified anxiety for New Jersey residents. Many residents worry about how federal funding cuts for education, Social Security, Medicare and Medicaid will impact their household budgets. On top of those concerns they shouldn’t have to worry about whether they can afford to heat or cool their homes as well.

We know this won’t solve New Jersey’s growing demand for electricity. In addition to  doing something to control costs we also need to do something about updating our energy resources. New Jersey’s growing need for energy has strained our utility infrastructure, which was already under pressure to meet demand. Our current energy infrastructure is in need of serious upgrades and has been for many years. We are working with our colleagues in the Legislature to address the need for infrastructure improvements.

Our bill was referred to the Assembly Telecommunications and Utilities Committee. We  are urging our colleagues to act quickly so we can advance the bill through the legislative process and get it signed into law.

In the meantime, we want to remind Legislative District 11 residents of state and federal programs available to help if they are facing financial challenges paying their utility bills.

The Low Income Home Energy Assistance Program (LIHEAP) is a federally funded program that assists low-income individuals and families with their energy costs. It provides financial aid to eligible households to help offset the high costs of heating and cooling their homes.

Payment Assistance for Gas & Electric (PAGE) is a statewide program that offers utility bill payment assistance to low-income households struggling with their gas and electric expenses. It helps individuals and families maintain essential utility services and avoid disconnection during times of financial hardship.

The Lifeline Program provides a discount on phone or internet services for eligible low-income households. It aims to ensure that all individuals have access to affordable communication options, an essential tool in today’s digital world.

If you are a resident of Legislative District 11 and you wish to learn more about eligibility and how to apply for assistance with your utility bills, please call our office at (732) 704-3808.  A member of our team will help you obtain information, answer questions, and guide you through the application process.