Summer’s around the corner and this means higher electric bills. The obvious reason for this is people use their air conditioners and fans to combat the heat, but there are some less apparent factors that contribute to increased power consumption.
One state in particular is going to be under even more pressure due to higher summer electric bills because its four power utilities are increasing their rates, some of which are going up by as much as 20%. It’s not all bad news, though, because we bring you tips to keep your consumption down as you factor in the additional cost of power under the new rates.
Which state is set for increased electric bills this summer?
The rates increases in this state were determined by an electricity auction. The increased rates will apply from June 1, 2025, and it’s bad news for residents already struggling with the rising cost of living due to inflation. Unfortunately, inflation applies across the board and inevitably means more expensive utilities and more people struggling under economic pressure.
The state that needs to brace for increased power utility costs is New Jersey. The increased rates won’t have an impact on the company’s pockets and will only serve to pay for the wholesale power itself directly, meaning that the extra funds won’t go towards enriching any of the utilities’ owners through profits. Profits are only generated through distribution revenue.
It’s unavoidable that many citizens will experience hardship. Brian O. Lipman, director of the New Jersey Division of Rate Counsel, spoke of the choices some people will be forced to make:
“Now you’re talking about making serious decisions. Am I going to pay my utility bill, my medical bills? Am I paying for rent?”
One of the ways to avoid this is by installing a renewable power supply device for the home, but not everyone is in a position to afford the initial outlay.
How were New Jersey’s summer rates decided?
New Jersey’s power utilities have to take part in an energy auction in February every year to set the wholesale electricty prices for residential customers who don’t go with an alternative power supplier. As the demand increases along with the heat, consumers will have to absorb the extra dollars they’re spending on power into their budgets.
The annual auction determines the price for a third of the state’s supply, a strategy intended to reduce volatility over the next three years. Lipman clarified:
“This increase in rates is going to people who actually generate the electricity. It’s not going to your utility. It’s going to the power plant.”
Breakdown of the New Jersey electric rates increase
Based on an average consumption of 650 kW per household, these are the increases to expect from June 1:
- Atlantic City Electric: The increase is 17.23%, on average up by $28.02 to $190.62 per month.
- Jersey Central Power and Light: An increase of 20.2%, up by $22.67 to $134.92.
- PSE&G: A 17.24% increase of $26.87 to $182.71.
- Rockland Electric: The percentage increase is 18.18%, which would see the average monthly bill go up by $25.48 to $165.64.
What can you do to keep your consumption down?
Spokesperson for JCP&L, Christopher Hoenig, drew attention to how consumption patterns can affect household power use:
“Heating and cooling costs generally account for the largest portion of a typical residential customer’s bill.”
Here are some simple strategies to lower consumption during both the hotter and colder months of the year:
- During the winter, blinds and curtains should be opened to let natural sunlight heat your rooms. Apply the opposite in summer by closing curtains or blinds to reduce the addtiional heat from the sunlight.
- Furnace or air conditioner filters should be changed every three months, or more when in high demand. Failing to do so could mean they’re drawing more power to perform.
- Seal air leaks around doors and windows to prevent warm air escaping in winter or cool air escaping in summer.
You may be surprised how much you could save by following these simple tips and others. You can also lower your consumption by simply switching your furnace or aircon on less frequently, but remember not to go so far that you enganger anyone’s health in extreme termperature conditions. In different news about winter and protecting yourself, here’s a list of the top five cars to avoid buying if you need one that manages well in icy conditions.