JCP&L Helping Lessen Impacts of Electricity Supply Price Increase During Hot Summer Months

Rhea-AI Summary

JCP&L, a FirstEnergy Corp. (NYSE: FE) subsidiary, has received approval from New Jersey regulators to implement measures helping customers manage rising electricity costs. The company will provide a $30 deferral credit on residential bills in July and August, to be recovered through $10 monthly charges from September to February. Supply costs, comprising 60% of bills, have led to a 19.6% increase in average residential bills. Additional measures include temporary suspension of service shut-offs, waived reconnection fees, and extended 24-month payment plans. The company is also promoting various assistance programs, energy efficiency tools, and cost-saving tips. The price surge is attributed to increased demand and reduced supply from power plant retirements, affecting Basic Generation Service rates for JCP&L's 1.1 million customers.

Positive

• Implementation of $30 deferral credit for residential customers in summer months
• Temporary suspension of service shut-offs during peak summer months
• Waiver of reconnection fees from July through September
• Extension of payment plans from 12 to 24 months for past-due balances
• Availability of various energy efficiency programs and rebates

Negative

• 19.6% increase in average residential electricity bills
• 60% of family bills attributed to rising supply costs
• Deferred summer credits must be repaid through $10 monthly charges in winter months
• Reduced power supply due to plant retirements contributing to price increases

Insights

Utility Sector Analyst

JCP&L's customer relief measures address electricity price spikes while maintaining revenue through deferred collection, showing regulatory cooperation during challenging market conditions.

This announcement highlights JCP&L's proactive approach to managing a significant 19.6% increase in customer electricity bills caused by spiking Basic Generation Service (BGS) rates. The approved measures include a $30 bill credit for July and August, to be recouped through $10 monthly charges during lower-usage months from September through February. This effectively creates a payment smoothing mechanism rather than a true cost reduction.

The regulatory approval from the New Jersey Board of Public Utilities demonstrates constructive collaboration between the utility and regulators to address affordability challenges. For investors, this represents a balanced solution that helps customers while preserving revenue recovery. The temporary suspension of disconnections and extension of payment plans to 24 months could slightly delay cash flows but reduces the risk of permanent revenue loss from uncollectible accounts.

What's particularly noteworthy is how JCP&L is navigating the challenging dynamics of the electricity market. With supply costs comprising nearly 60% of customer bills in their territory, the company is appropriately emphasizing that these increases stem from wholesale market conditions rather than their distribution operations. The price spike results from fundamental supply-demand imbalances caused by growing electricity demand coupled with power plant retirements - underlying conditions unlikely to resolve in the near term.

For FirstEnergy investors, this demonstrates management's ability to implement practical solutions during challenging market conditions while maintaining positive regulatory relationships - a critical competency in the regulated utility sector.

Credits, benefits enhance year-round programs that aid customers

HOLMDEL, N.J., June 18, 2025 /PRNewswire/ -- Jersey Central Power & Light (JCP&L), a subsidiary of FirstEnergy Corp. (NYSE: FE), has received approval from the New Jersey Board of Public Utilities (BPU) to implement measures that will help ease the impact of rising electricity prices on families.

Doug Mokoid, FirstEnergy's President of New Jersey: "Electricity supply costs, which are nearly 60% of a family's bill in our service territory, have surged this summer. While we don't control supply prices, we are committed to helping customers manage these increases through new and expanded assistance programs."

To help offset higher summer costs, JCP&L will apply a $30 deferral credit on all residential bills in July and August. The deferral credit will be recovered through a $10 monthly charge from September through February, when electricity use is lower.

The approved measures also include:

• A limited suspension of service shut-offs in July, August and September, following the same criteria as the Winter Termination Program, which provides protection for certain vulnerable customers.
• Waived reconnection fees from July 1-Sept. 30.
• Enhanced deferred payment agreements, or payment plans, allowing customers to spread past-due balances over up to 24 months instead of 12 months.

These initiatives complement JCP&L year-round offerings to help manage energy usage and costs:

• Bill assistance programs for income-eligible customers, those with medical needs and others facing financial hardship. Visit firstenergycorp.com/billassist.
• Energy efficiency tools, including the Home Energy Analyzer, whole home energy solutions, HVAC rebates, appliance rebates and recycling. Visit energysavenj.com.
• Easy-to-implement tips and tricks, including smart landscaping and a guide of 100 ways to save energy without sacrificing comfort. Visit firstenergycorp.com/saveenergy.

Why Supply Costs Are Rising

Residential electric bills include two main charges: JCP&L's delivery charge, which covers system maintenance and power delivery, and supplier charges, which reflect the cost of generated electricity from power plants and other sources of generation.

Watch a video on FirstEnergy's YouTube channel to learn more about why New Jersey electricity supply costs are rising.

New Jersey customers can choose their electricity supplier. Those who don't are automatically enrolled in Basic Generation Service (BGS), which JCP&L procures through a competitive auction.

A combination of rising demand and reduced supply due to power plant retirements have driven up supply prices. As a result, the BGS rates have spiked, increasing the average residential bill by 19.6%. The average JCP&L residential customer uses 777 kilowatt-hours (kWh) per month. JCP&L is not an electricity supplier and simply passes supply costs directly to customers at no mark up.

JCP&L serves 1.1 million customers in the counties of Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren. Follow JCP&L on X @JCP_L, on Facebook at facebook.com/JCPandL or online at jcp-l.com.

FirstEnergy is dedicated to integrity, safety, reliability, and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy on X @FirstEnergyCorp or online at firstenergycorp.com.

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SOURCE FirstEnergy Corp.

FAQ

What measures is JCP&L (FE) implementing to help customers with rising electricity costs?

JCP&L is offering $30 deferral credits in July-August, suspending service shut-offs, waiving reconnection fees, and extending payment plans to 24 months

How much have JCP&L electricity rates increased in 2025?

Average residential bills have increased by 19.6% due to rising Basic Generation Service rates

How will JCP&L's summer bill credit program work?

Customers receive $30 credits in July and August, which will be recovered through $10 monthly charges from September through February

What is causing the increase in JCP&L electricity supply costs?

The increase is due to rising demand and reduced supply from power plant retirements

How many customers does JCP&L serve in New Jersey?

JCP&L serves 1.1 million customers across 13 counties in New Jersey

What percentage of JCP&L customer bills is attributed to supply costs?

Supply costs account for nearly 60% of a family's electricity bill in JCP&L's service territory