JCP&L warns New Providence customers of nearly 20% jump in supply charge starting June 1

Bob Flynn, a representative of Jersey Central Power & Light, told the New Providence Borough Council that results of the state BGS (Basic Generation Service) auction mean typical non-shopping residential customers will see roughly a 19.9% increase in supply costs beginning June 1, 2025.

"The typical New Jersey resident customer using 777 kilowatts per hour in their house will see a 19.9% increase," Flynn said during the council meeting, adding that the utility is a delivery company and does not mark up the supply charge: "This is not a proposed rate hike from us as your utility." He said rates are determined in a competitive auction and certified by the New Jersey Board of Public Utilities (BPU).

Flynn told the council the increase is driven by external market factors, including higher demand and rising capacity costs as generation stations retire and demand grows from new facilities such as data centers. He said PJM — the regional transmission organization that procures generation for the region — determines the supply mix and that detailed generation breakdowns are available on PJM’s website.

The presentation explained the bill split residents will see: a supplier or "supply" charge set by auction winners, and a separate delivery charge collected by JCP&L. Flynn said customers who want alternatives can "shop around for a third party supplier," but cautioned that introductory rates can rise and urged residents to review contract terms.

Flynn also described operational changes and customer programs: a full rollout of smart meters by the end of the year, an opt-out fee of about $11 per month for customers who decline a smart meter, an equal-payment plan that evens monthly bills over 12 months, and several efficiency and rebate programs (including HVAC and weatherization incentives) available through energysavenj.com. He said smart meters are intended to reduce estimated bills and improve outage restoration by enabling remote meter pinging.

Council members asked how often the BGS auction runs and whether renewable energy credits are included; Flynn said the auction is annual and that he would follow up on renewable-credit specifics and detailed generation mix questions, which he said are posted by PJM. A resident asked whether recent tariffs affecting Canadian imports could change the certified auction results; Flynn said he does not anticipate changes because the auction has been concluded and certified but said he would update the borough if new developments arise.

Flynn closed by offering to coordinate outreach materials for residents and to provide the slides and resources the utility posts to its social channels.

What’s next: the BGS default rate will appear on customer bills starting in June; residents concerned about the increase were advised to review third-party supplier contracts carefully and to contact JCP&L for assistance programs or information.