Gottheimer announces new action to combat utility price hikes under ‘Lower Utility Bills Plan’ after 40% rate increase

NEW JERSEY — U.S. Congressman Josh Gottheimer (NJ-5) Monday announced new action as part of his ‘Lower Utility Bills Plan’ to combat relentless utility price hikes crushing hardworking Jersey families. This comes after the New Jersey Board of Public Utilities (BPU) approved multiple rate hikes, amounting to a 40% increase on utility bills in one year.

Gottheimer called out utility monopolies — JCP&L, Orange and Rockland, PSE&G, Atlantic City Electric, and Vineland Municipal Utilities (VMEU) — for failing to keep up with critical infrastructure repairs, causing brownouts throughout the state, delivering subpar service, and jacking up rates on hardworking Jersey families.

Gottheimer also joined state leaders in calling on the Federal Energy Regulatory Commission (FERC) to immediately investigate PJM, the power grid operator responsible for skyrocketing costs, for overpaying at auction for their energy supply, and slammed the Trump Administration’s decision to gut staff at the Low-Income Home Energy Assistance Program (LIHEAP), the federal program that helps New Jersey’s hardest-pressed families pay for their utility bills.

“There is a harsh reality coming at Jersey families on their June utility bills — another outrageous increase on your electric bill. In fact, when you add it up, over the last year, families are looking at a nearly 40 percent increase on their utility bills,” said Gottheimer. “Right now, too many families are being forced to choose between keeping the lights on and putting food on the table. No one in Jersey, or anywhere across the country, should have to make that choice. We have to give hardworking families a break — not break their bank.”

Rising utility costs in New Jersey:

• Compared to last year, JCP&L customers will see a 39.7% rate increase, Orange and Rockland customers will see a 37% rate increase, PSE&G customers will see a 38.5% increase, and Atlantic City Electric customers will see a 40.6% increase.
• The utility companies — JCP&L, Orange and Rockland, PSE&G, Atlantic City Electric, and Vineland Municipal Utilities (VMEU) — effectively operate as monopolies in New Jersey.
• The New Jersey Board of Public Utilities (BPU) approved a 40% increase in utility bills over the last year.
  • The average household water and gas bill rose by more than 7% each over the same period.
  • New Jersey’s household bills are already 32% higher than the national average.
• The Trump Administration slashed the entire staff at LIHEAP, jeopardizing assistance that helps nearly 6 million families nationwide and 240,000 households in New Jersey pay their heating and cooling bills.
• PJM, the power grid operator that supplies electricity to 13 states and their electric companies, including New Jersey, has delayed 84 interconnection projects, including 45 solar, 25 battery storage, and 14 offshore wind projects.
  • These delays forced a $12.5 billion increase in auction costs this year and $14.7 billion in total increased costs passed on to Jersey ratepayers.
  • Governor Murphy said last week that PJM created a cost crisis that was “foreseeable and preventable.”

Gottheimer’s new action as part of his ‘Lower Utility Bills Plan’:

• First, Gottheimer is joining the state in calling on the Federal Energy Regulatory Commission (or FERC) to immediately investigate PJM for skyrocketing costs by overpaying at auction.
• Second, Gottheimer is calling on New Jersey’s utility companies to reverse their insane price increases.
• Third, Gottheimer is introducing legislation to ensure LIHEAP is fully staffed and equipped to deliver the assistance families rely on, especially as energy costs rise.
  • Gottheimer is calling on HHS Secretary Robert F. Kennedy, Jr. to immediately rehire LIHEAP staff and work to strengthen and modernize the program.
• Finally, Gottheimer is fighting to implement his ‘Lower Utility Bills Plan’ announced in December.
  • Gottheimer introduced the Energy Costs Relief Act to provide a refundable tax credit of up to $350 to help offset rising energy costs and put money directly back into families’ pockets.
  • Gottheimer introduced the Know Your Rates Act, which will require utility companies to directly notify customers if their energy usage rises above their monthly average, so they can adjust before it is too late.
  • Gottheimer helped negotiate, write, and pass the Bipartisan Infrastructure Bill, which has provided New Jersey with significant investment in our electric grid, climate resiliency, and clean energy technology.
  • Gottheimer also helped pass the Inflation Reduction Act, which directs $11.4 billion to New Jersey toward clean energy.