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New Law Seeks to Prevent Utility Bill Sticker Shock

Gov. Phil Murphy
File photo
Gov. Phil Murphy.

By Vince Conti

The Democrats are pulling out all stops to try and avoid being blamed by voters when utility bill hikes kick in this June: On April 22, Gov. Phil Murphy signed newly passed legislation that requires utilities to inform customers by text message or email on the 10th and 20th days of a billing cycle about the cost of their electricity and the amount of kilowatt hours or therms they’ve used.

The information is to be provided so ratepayers can adjust their usage and avoid spikes in their bills. The measure does not give users tools like time-of-day pricing, which means the most effective way for a customer to reduce usage is to significantly reduce use of electricity.

The law takes effect in 90 days. It says utilities must offer customers a way to sign up for a separate warning when their average daily usage exceeds the prior month’s or the same month’s in the prior year. It also requires that utility bills be recast to provide costs for all tariffs, fees and taxes.

The average electricity utility bill is composed of four categories of expense: supply, transmission, distribution, and tariffs and fees.

Democrats have been trying to focus voter wrath on grid operator PJM Interconnection. On April 17 Murphy went so far as to request a federal investigation of what he termed market manipulation in the July 2024 PJM capacity auction that is having a big impact in the delivery year that starts June 1.

Republicans say the blame belongs squarely on the shoulders of the Murphy administration and state Democrats, who championed ambitious renewable energy projects, especially offshore wind power. Those projects, along with the Democrats’ antipathy toward fossil fuels, led to serious supply problems in a state that was already a net importer of electrical power, they say.

Contact the reporter, Vince Conti, at vconti@cmcherald.com.

Reporter

Vince Conti is a reporter for the Cape May County Herald.

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