Governor Murphy Announces Plan to Ease Summer Utility Rate Increases

Electrical towers at dusk,

Governor Phil Murphy recently announced new measures to help New Jersey residents manage significant utility rate increases scheduled to take effect June 1, 2025. The rate hikes, ranging from 17.2% to 20.2% depending on location, are expected to hit hardest during high-usage summer months.

“New Jersey ratepayers are preparing for an unprecedented increase in utility costs,” said Governor Murphy. “While the utilities are not responsible for the rate increases, they have a responsibility to protect ratepayers.”

The Governor’s plan focuses on both immediate relief and long-term solutions. Key components include:

Immediate Relief Measures:

  • Urging utilities to extend the Winter Termination Program (which prevents service disconnections) to summer months
  • Suspending reconnection fees during peak summer usage
  • Distributing a second Residential Energy Assistance Payment, following last year’s successful program that provided $48.7 million via one-time $175 bill credits to over 278,000 qualifying households

Expanded Assistance Programs:

  • Enhancing the Universal Service Fund program, which offers bill credits to households earning up to 60% of state median income (about $92,000 annually for a family of four)
  • Maintaining several existing assistance programs including the Fresh Start Program, Payment Assistance for Gas and Electric, Low Income Home Energy Assistance Program, Lifeline, NJ Shares, and NJ Comfort Partners

Long-Term Solutions:

  • Expediting additional solar energy projects through the Community Solar Energy Program, which already serves 28,000 subscribers with guaranteed savings of 15% or more
  • Opening a new proceeding on resource adequacy to bring more power generation online while keeping costs low
  • Investigating nuclear generation opportunities

The state encourages residents to contact the New Jersey Board of Public Utilities (NJBPU) at (800) 624-0241 for assistance before facing service disruption. Detailed information about available programs can be found on the NJBPU’s website under “BPU Assistance Programs.”