⬆Electric rates are going up in New Jersey

⬆State regulators approve rate hikes of nearly 5%

⬆Small businesses will be hit particularly hard

It is going to cost more to cool your home this summer.

The New Jersey Board of Public Utilities (NJBPU) has granted rate increases to utility providers for electricity. The higher rates go into effect June 1, 2023.

NJBPU Board President Joseph L. Fiordaliso announced the rate increases on Thursday.

JCP&L customers will see the biggest increases at 4.8%. Atlantic City Electric customers will pay 4.1% more. PSE&G customers will be hit with a bill that is 3.3% higher.

"In 2023, BGS (Basic Generation Service) ratepayers will experience an increase in energy costs that are generally at or below the current rate of inflation,” Fiordaliso said in a statement.

The NJBPU estimates monthly bills will rise between $4 and $5.50, but that is for usage of 650 kilowatt hours. Many New Jersey homes use nearly double that amount. The increases also come just as usage rises into the summer to power air conditioning units.

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The increases could put a strain on many New Jersey small businesses, including restaurants and manufacturers, who use significant amounts of electricity. An increase in utility costs could be difficult for some businesses to absorb when profit margins have already been squeezed by higher inflationary costs.

According to the NJBPU, the cost that residents and businesses will pay for electricity is partly determined by a BGS auction. Power is auctioned off by generators of electricity, then distributed by New Jersey's utility companies. With the price at auction rising, the NJBPU passes the higher cost on to consumers by granting rate hikes.

Eric Scott is the senior political director and anchor for New Jersey 101.5. You can reach him at eric.scott@townsquaremedia.com

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