Freeze rate hikes? What Gov. Sherrill’s order means for N.J. electric bills

The state could pause electric distribution rate hikes — but it’s not clear how long that would last

In addition to supply charges, which utilities pass along to consumers without earning a profit, utilities charge customers for delivering electricity to their homes and building and maintaining grid infrastructure.

Since this is where the profit lies and utilities are afforded a monopoly, the companies have to periodically ask the Board of Public Utilities for permission to increase these delivery rates. Sherrill’s order directs the board to consider pausing these proceedings.

The board is currently considering a request from Rockland Electric Company in North Jersey to raise the typical household’s monthly bill by as much as $29. A spokesperson for the board did not answer questions about whether and for how long it plans to pause cases like this one by press time.

“The [Board of Public Utilities] often has a clock on which they have to act,” Silverman said. “It’s very difficult for them to just sit there and hold these [proceedings] in abeyance, but now they have the … governor telling them to do that.”

Silverman said the board will need to make “tough choices,” as it needs to balance the long-term need for grid maintenance and growth with the need to reduce short-term costs. He said Sherrill’s executive order shows the governor is prioritizing “immediate rate relief” for customers.

Lipman, who advocates for utility customers in rate cases before the board, said his office has not been told that the Rockland Electric rate case is on pause, so it is continuing to hire experts, issue discovery and prepare testimony.

“We’re moving forward as if the case is moving forward,” he said.

Lipman expects utilities to file other petitions with the board this year seeking smaller increases, usually no more than a few dollars on the typical customer’s monthly bill, to recover costs from replacing wires, hardening infrastructure or making energy-efficiency improvements.

“Those are the ones that I think are likely going to be paused or strung out a little bit more than they would have in the past,” Lipman said.

But Lipman worries such a pause could simply delay the bill hikes, essentially putting them “on the credit card.” He said the state would be “hard pressed legally” to deny the companies reimbursement for certain investments.

“So we’ll say to the utilities, ‘We won’t give you an increase in 2026, but we’ll give you either a bigger increase in 2027, or we’ll pay interest,” he said. “That’s what I’m really concerned about.”

Representatives for PSE&G, Atlantic City Electric and JCP&L all did not respond to questions about any bill increases they plan to seek approval for in the coming year. All three provided statements that acknowledged the need for energy affordability and indicated they are willing to work with Sherrill. Rockland Electric’s parent company, Consolidated Edison, did not respond to a request for comment.