JCP&L Announces Rate Increase For New Year

The New Year will bring an unwelcome change for many Ocean and Monmouth County residents: an increase in their Jersey Central Power & Light bills.

JCP&L announced Monday that it has received the approval of the state Board of Public Utilities for a settlement that will allow the company to raise rates 3.6 percent. The amount is a reduction from the 6 percent increase the company requested in April. Parties to the settlement include the BPU staff; New Jersey Division of Rate Counsel; Gerdau Steel; U. S. Department of Defense; and New Jersey Large Energy Users Coalition.

JCP&L said the increase amounts to $3.98 a month for a residential customer using 768 kilowatt hours of electricity, which the company said is the average monthly usage for all JCP&L residential customers.

The increase goes into effect Jan. 1, JCP&L said.

In a news release, the company said the increase "will help support and build on the significant service reliability enhancements" it has made in recent years.

Overall, the increase will total $80 million and be used to continue tree trimming, inspections of lines, poles and substations, and maintenance for newly installed equipment that enhances and modernizes the electric system, JCP&L said.

JCP&L said it had its best service reliability record in more than a decade in 2015, including a 33 percent reduction in system outage duration and a 19 percent improvement in customer restoration times.

In addition, the utility's tree trimming and vegetation management programs have reduced tree-related outages more than 38 percent, the company said.

The increase comes almost two years after the BPU cut electric bills by 1.2 percent, according to a report on APP.com. After a review of JCP&L's books that began in 2012, the BPU agreed, following hearings before an administrative law judge, that JCP&L overcharged customers. The judge recommended a rate cut of nearly $107.5 million; the BPU ordered a cut of almost $115 million but allowed JCP&L to collect $80.7 million to offset $580 million in costs from the destruction caused by Superstorm Sandy.

"It's our job to provide dependable electricity to our customers for their homes, businesses and communities, and the rate settlement will help us deliver on this commitment," JCP&L president Jim Fakult said in a news release. "The additional revenue will provide us the resources and technology necessary to enhance our infrastructure to help continue safe and reliable electric service for our customers."

Even with the increase, JCP&L said it has the lowest electric rates among New Jersey's four regulated electric utilities.

APP.com reported the settlement also includes an agreement by JCP&L to lessen its reliance on bank loans to pay for capital spending, such as the cost to maintain and improve its system. Over time, FirstEnergy will increase its contributions to JCP&L, the report said. JCP&L also agreed to lower its profit margin to 9.6 percent from 9.75 percent, and to submit a plan to improve its credit rating over the next three years.

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