Decoding Your JCP&L Bill: Understanding the June 1st Rate Hike

If you’ve noticed a jump in your recent bill, you’re not alone. Effective June 1, 2025, electricity rates for Jersey Central Power & Light (JCP&L) customers have increased. This rate adjustment is a direct result of the increase in the cost of power during the state’s annual energy auction and anticipated rising electricity demand influenced by the growth of data centers. Understanding the reasons behind this change and the steps you can take to manage your bill is more important than ever.

How Much Did Rates and Bills Go Up?

The rate increase is significant, with JCP&L customers facing one of the highest jumps among New Jersey’s utilities. For a typical residential customer, the total monthly bill is projected to increase by about 19.6%, or an average of $23 per month. This is based on a household using approximately 750 kWh per month, so your exact increase will vary depending on your energy consumption.

The “Price to Compare” (PTC)—the default rate from JCP&L—has also risen to 19.56¢ per kWh, which is the rate for regular customers during on-peak summer months. This is the rate you should use as a benchmark when comparing offers from competitive electricity suppliers. For exact rates, you should always check with your local utility.

Why Are JCP&L Rates Increasing?

JCP&L, as a distribution company, does not generate its own electricity. Instead, it procures it on behalf of its customers through a competitive auction process regulated by the New Jersey Board of Public Utilities (BPU). The results of the most recent auction led to a spike in prices due to a few key factors:

• Rising Wholesale Energy Costs: The price of natural gas, a significant fuel for power generation in the region, has been highly volatile. Market conditions, including increased demand and global supply chain issues, have driven up these costs.
• Increased Demand: The regional power grid operator, PJM, has reported a significant surge in demand, particularly from new data centers. This growing consumption puts a strain on the existing grid and leads to higher prices in the capacity market auctions, where utilities buy future power.
• Power Plant Retirements: A reduction in available power plant generation due to retirements has also contributed to a tighter energy supply, which in turn drives up prices.

Actions You Can Take to Manage Your Bill

While these rate increases are challenging, you’re not without options. Here are some actions you can take to lower your monthly costs:

• Shop for a New Supplier: New Jersey has a deregulated energy market, giving you the power to choose your electricity supplier. By comparing JCP&L’s new PTC to competitive offers, you can lock in a lower, fixed rate for a set period (e.g., 12 or 24 months) and protect yourself from future rate hikes.
• Reduce Your Energy Usage: Simple changes at home can make a big difference. Adjust your thermostat by a few degrees in the summer, use LED bulbs, unplug electronics when not in use, and seal air leaks around windows and doors.
• Enroll in Budget Billing: JCP&L offers a Budget Billing program that levels out your monthly payments over the course of the year, so you avoid high spikes during peak usage seasons.

Financial Assistance for JCP&L Customers

JCP&L and the state of New Jersey have several programs to help customers facing financial hardship:

• Payment Plans: JCP&L can work with you to establish a deferred payment plan to help you manage a past-due balance. Recent BPU approvals allow for enhanced payment plans that can be spread out over up to 24 months.
• Bill Assistance Programs: Programs like the Low-Income Home Energy Assistance Program (LIHEAP) and the Universal Service Fund (USF) offer grants and bill credits to eligible low-income households.
• Service Shut-off Protections: A limited suspension of service shut-offs has been approved for July, August, and September for specific vulnerable customers, following the same criteria as the Winter Termination Program.
• Bill Credits: To help offset higher summer costs, JCP&L is applying a $30 deferral credit on all residential bills in July and August. This credit will be recovered through a $10 monthly charge from September through February.

If you are struggling to pay your bill, the best course of action is to contact JCP&L directly at 1-800-662-3115 to discuss your options and apply for assistance.