Photo: bymuratdeniz / iStock / Getty Images
The New Jersey Board of Public Utilities (BPU) has approved $100 in credits for electric bills to help residents cope with rising electricity costs. On Wednesday (August 13), the board voted unanimously to implement these credits, which will reduce monthly residential electric bills by $50 in September and another $50 in October. These credits apply to all residential ratepayers, regardless of income.
The credits are part of a broader plan by Governor Phil Murphy and state Democrats to address surging electricity prices, which have been driven up partly by the energy demands of artificial intelligence data centers. The credits will be funded using the solar alternative compliance payment and the Regional Greenhouse Gas Initiative, which together have amassed over $386 million. According to the New Jersey Monitor, the solar funds will be used first.
Electricity rates in New Jersey have surged by about 20% since June, and further increases are expected. The BPU has also approved other programs to assist low-income residents with $175 in bill credits, distributed in equal installments over seven months.
The BPU's decision comes amid criticism of PJM Interconnection, the grid operator for New Jersey, for slow integration of renewable projects. The board has also faced challenges with offshore wind projects, as federal uncertainties have stalled progress. Despite these hurdles, the BPU remains committed to reducing costs for ratepayers and addressing energy challenges in the state.