New Jersey utilities implemented an energy cost deferral credit program in summer 2025 to help residential customers manage unprecedented electricity rate increases. The New Jersey Board of Public Utilities (NJBPU) approved this initiative in June 2025 after electric rates surged approximately 20% due to wholesale energy market changes.
How the Deferral Credit Works
The program provides automatic $30 credits to all residential electric customers for July and August 2025, totaling $60 in summer savings. These credits appear directly on monthly utility bills without requiring customer enrollment or applications.
During this deferral period, utilities continue paying electricity suppliers the full generation costs while temporarily absorbing the difference. The state’s four major electric distribution companies—Public Service Electric and Gas (PSE&G), Jersey Central Power and Light (JCP&L), Atlantic City Electric (ACE), and Rockland Electric Company (RECO)—all participate in this program.
Repayment Structure
Starting in September 2025, customers will repay the deferred amount through $10 monthly installments from September through February 2026. Crucially, utilities waived all carrying costs and interest charges, ensuring customers pay no more than the original amount.
“No customer will pay a penny more as a result of this,” explained BPU Executive Director Bob Brabston. The deferral simply shifts higher costs from peak summer months when air conditioning usage drives bills to their highest levels.
Additional Summer Relief Measures
Beyond the deferral credit, the NJBPU approved complementary affordability measures including extended shutoff protections through September, waived reconnection fees, and expanded payment plan options up to 24 months. Low-income customers receive additional support through enhanced Universal Service Fund credits and the Residential Energy Assistance Payment program.
This deferral program represents part of New Jersey’s broader $430 million relief package addressing supply-driven rate increases attributed to regional grid operator PJM Interconnection’s capacity auction results.
If you need help paying your utility bills, please visit the NJBPU website for more information.
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