TRENTON – Senator John Burzichelli wants the Board of Public Utilities to investigate the regional pricing system responsible for electric utility rates in New Jersey and to make any needed reforms to bring down consumer costs.

Senator Burzichelli introduced a Senate Joint Resolution, SJR-154, directing the BPU to investigate the PJM Interconnection Reliability Pricing Model, the market that determines the distribution and pricing of electric power, to collaborate with other states to promote affordable practices, and to make any reforms identified in the process. The resolution also urges PJM to expedite the review of new electricity generation applications.

“The rising cost of electricity bills is putting a heavy burden on consumers,” said Senator Burzichelli (D-Gloucester/Salem/Cumberland). “The BPU needs to take decisive actions to hold down costs. These price hikes are a burden for all ratepayers but are especially harmful to working families and low-income residents who are already struggling to make ends meet.”

The PJM administers a competitive auction among 13 states to secure electric power on behalf of New Jersey customers at prices “consistent with market conditions,” according to state law. The increased costs of the capacity market, coupled with greater demand, have contributed to the price hikes. Delays in the approval of new energy sources have imposed additional pressure on the pricing equation, Senator Burzichelli noted.

“The BPU and the Murphy Administration have been working to protect customers from rate hikes but we need to determine if structural reforms are needed to get at the root causes,” said Senator Burzichelli. “Market reforms may be needed, along with an increase in the supply of new energy. Current conditions are just not affordable for New Jerseyans.”

After the latest energy auction, estimates indicate that in June the average Atlantic City Electric customer’s bill could increase by $28, the average JCP&L bill could increase by over $22, for PSE&G the average bill will spike over $26, and for RECO, the average bill could rise over $25. Energy demand is expected to increase by 2.3 percent annually over the next decade in the region served by PJM.