JCP&L proposes new rates to reflect investments in the grid
Jersey Central Power and Light (JCP&L) has submitted a rate review request with the New Jersey Board of Public Utilities (BPU).
The proposed rate adjustment would support a $185 million investment to strengthen the energy grid, enhance the customer experience, and fund new low-income and senior citizen customer assistance programs.
If the rate adjustment is approved, the typical JCP&L residential customer, using 780 kilowatt hours per month, would see a 7.5 percent overall rate increase, totaling $8.45 per month. However, even with the rate increase, JCP&L customers would pay the lowest residential electric rates among New Jersey’s four regulated electric distribution companies.
“Our proposal balances our need to invest in a safe, reliable, and modern grid while keeping rates affordable for our customers,” Jim Fakult, president of New Jersey operations for FirstEnergy, which owns JCP&L, said. “This plan keeps JCP&L’s rates the lowest in the state and offers additional assistance to our customers facing financial hardship.”
JCP&L has invested more than $794 million to modernize and strengthen its electric grid since the last rate adjustment in 2020. The investments helped to reduce the size and length of power outages.
Also, JCP&L plans to launch two new customer assistance initiatives. One is a Senior Citizens Discount Program, which would provide income-eligible seniors with a discount on JCP&L’s distribution charges. The average discount would be about $15 per month, applied as a credit on the monthly bill.
The second initiative is the creation of an Energy Assistance Outreach Team, which will enhance the company’s efforts to increase awareness, education, and participation in energy assistance programs available to eligible customers.
The rate request proposal also includes an increase of more than $10 million per year in the company’s budget to maintain and eliminate trees that threaten power lines. In addition, it includes the recovery of costs incurred by JCP&L from the impact of major storms, including Tropical Storm Isaias, the remnants of Hurricane Ida, 2021’s bow echo, Winter Storms Zeta and Elliott and other weather-related events.
In addition, it includes funding for upgrading streetlights, installing a new “smart electric meter” system, and for JCP&L’s electric vehicle charging program.
JCP&L serves 1.1 million customers in the counties of Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren.
