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Board of Public Utilities approves package of summer bill protections, expands USF and funds REAP credits
Summary
The Board approved stipulations to ease summer bill spikes tied to capacity-market prices, expanded Universal Service Fund benefits and allocated $48.74 million for a second REAP round that provides $25 monthly credits over seven months to eligible customers.
The Board of Public Utilities voted unanimously to approve a package of measures aimed at reducing the impact of recent capacity-market-driven electricity price increases on New Jersey customers.
Board staff presented stipulations negotiated with the four electric distribution companies and rate counsel that defer $30 from each customer's July and August bills and recover the deferred amounts over September through February without charging interest, a move staff said would smooth unusually high summer bills. "The utilities have agreed to defer $30 out of each monthly bill in July and August and recover that deferral over the ensuing six months from September to February," staff said during the presentation.
Staff also described expansions to the Universal Service Fund (USF). The board approved staff recommendations to raise the USF minimum benefit from $5 to $20 per month per gas and electric account, increase the combined maximum benefit from $180 to $200 per month, and require utilities to meet enrollment targets and file annual outreach plans. Staff recommended implementing those changes for the USF program year beginning Oct. 1, 2025.
In a separate action, the board approved a second iteration of the Residential Energy Assistance Payment (REAP) program, allocating $48,742,925 to provide eligible households with $25 per month in bill credits spread over seven months, beginning August 2025 and continuing through February 2026. Staff said eligibility would be determined using categorical criteria and the Board's Winter Termination Program enrollment to minimize application burdens.
Board members publicly thanked staff and the utilities for negotiating the measures and emphasized the need for an education and outreach campaign so customers understand the protections and how to enroll. The board recorded unanimous roll-call votes in favor of each recommendation. The meeting concluded after the board reviewed several additional agenda items that together the chair said would help address rising energy costs.
