JCP&L’s unique rate case filed Thursday asks the N.J. Board of Public Utilities to approve a $253 million increase in base distribution rates, along with a separate charge to recover $476 million in deferred storm costs.
Here’s what that means: JCP&L feels it has found a way to maintain the rate freeze that Gov. Mikie Sherrill has demanded of utilities (doing so until January of 2028) while securing funding for needed infrastructure updates.
It’s a filing built to meet the moment’s two demands — affordability and reliability — in a way that doesn’t delay costs to consumers but uses offsets (think credits) to cover the increase to consumers until Jan. 2028, the company said.
The bottom line on the request looks like this: Consumer delivery rate cost will remain unchanged until January of 2028, when they will increase by approximately 8.8%, or roughly $14.23 more a month for a typical household using 767 kilowatt-hours.
Combined, the average customer would see an estimated 8.5% increase in their total bill once the changes are fully phased in.
Here’s a breakdown of the filing:
What JCP&L is asking for:
- A $253 million increase in base distribution rates — about a 7% bill increase once it takes effect;
- Recovery of $476 million in previously deferred storm costs through a separate charge;
- Combined, an estimated 8.5% total bill increase for the average customer (8.8% for residential customers) — about $14.23 more a month for a typical residential customer using 767 kWh.
How it will be phased in:
- New base distribution rates would technically take effect May 1, 2027;
- Offsets would cancel out that increase for residential customers through the rest of 2027;
- Both the distribution rate increase and the storm-cost charge would first be felt by customers starting January 2028;
- Storm-cost recovery would be spread over 10 years rather than a shorter window.
What it will be used for:
- $2.1 billion in additional base distribution investments, part of a five-year, $6.9 billion capital plan;
- Modernizing the grid, with focused investment in highest-priority circuits;
- Increasing remote monitoring and control capability through EnergizeNJ;
- Upgrading transmission assets for long-term reliability and capacity;
- Continuing energy efficiency programs to meet state goals.
JCP&L President Doug Mokoid spelled out the potential impact.
“I understand there’ll be questions, there’ll be concerns,” he said. “People will want to understand what’s in this filing, what benefits they’ll get out of it — those are all fair questions.
“This filing will enable us to continue to make investments for our customers, while also, with the offsets we’ve identified, mitigating bill impacts for these distribution rate increases until 2028.”
The rate case requires approval from the N.J. Board of Public Utilities.
It’s unclear when the BPU will rule on the request, but history suggests a decision would likely come around mid–year in 2027.
Mokoid knows his goal today.
“It’s one thing to be a lowest cost provider,” he said. “It’s another to be a lowest cost provider with significantly improved reliability. That’s what we’re striving for.”
