Gottheimer Announces New Lower Utility Bills Plan to Fight Recent Price Hikes

Says fight for affordability “just heating up”

Urges BPU to reconsider hikes — no “coal in stockings of Jersey families”

Urges All-of-the-Above energy approach 

FORT LEE, NJ — Today, December 3, 2024, U.S. Congressman Josh Gottheimer (NJ-5) announced his “Lower Utility Prices Plan,” which includes new legislation and action to combat utility price hikes hitting hardworking Jersey families. Gottheimer’s announcement follows the New Jersey Board of Public Utilities approving a 16% increase in natural gas prices right before the holidays and as winter begins.

A recording of the announcement can be found here.

“The bottom line: We can’t raise utility bills by sixteen percent when folks are already struggling. All across our state, I have heard the concerns — from families and small businesses saying: ‘I can’t afford my utility bills, I can’t afford rent, I can’t afford my healthcare or childcare.’” said Congressman Josh Gottheimer NJ-5). “To all our Jersey families who are struggling to pay their utility bills, our fight for affordability is just heating up.”

Rising Utility Costs in NJ

• Last month, the BPU approved new rate increases on heat usage by up to 16%.

• • More than half a million Jersey families in Monmouth, Ocean, Morris, Middlesex, and Burlington counties who get their gas from New Jersey Natural Gas, will see their annual bill increase of more than $240 on average.

• More than 300,000 Elizabethtown Gas Company customers in Union, Middlesex, Sussex, Warren, Hunterdon, Morris, and Mercer counties were also hit with a 6.5% increase, meaning families could pay nearly $100 more annually.
• In 2022, BPU approved rate hikes that cost New Jersey residents hundreds of dollars more for natural gas — as much as $31 per month, in addition to 25% more for electricity.
• Electricity demand in the U.S. is on track to more than double between now and 2050
• New Jersey’s household bills are 32% higher than the national average.

Gottheimer’s New “Lower Utility Bills Plan”

• First, Gottheimer is sending a letter to BPU and utility providers urging them to immediately reverse their decision to raise utility rates on families.
• Second, Gottheimer is introducing the Energy Costs Relief Act.

• • This legislation provides a refundable tax credit of up to $350 to help offset rising energy costs.

• Third, Gottheimer is introducing the Know Your Rates Act in Washington, is similar to legislation from State Senator John Burzichelli.

• • This legislation requires utility companies to directly notify customers by phone, email, or text after ten days into their billing cycle if their energy usage rises above their monthly average. They’ll then receive another notification after 20 days. This will help families adjust their usage or prepare for higher bills before it’s too late.

• Fourth, Gottheimer is introducing the Home Energy Assistance Tax Credit (HEAT) Act.

• • This legislation will double the maximum Energy Efficient Home Improvement Credit allowed for energy efficiency upgrades, including residential heat pumps, to $4,000 per year. Currently, this federal tax credit is capped at $2,000 per year.

Gottheimer’s All-of-the-Above Energy Plan is committed to improving New Jersey and US energy independence to prevent price hikes from happening in the first place. Gottheimer helped negotiate, write, and pass the Bipartisan Infrastructure Bill, which so far has provided Jersey with nearly $130 million in investments for our electric grids to prevent outages, climate resiliency, and clean energy technology.

Gottheimer also worked to pass the Inflation Reduction Act, which directs nearly $400 billion in federal funding toward clean energy. Between now and 2030, this will bring an estimated $11.4 billion of investment in large-scale clean power generation and storage to New Jersey. This includes $30 billion in tax credits to accelerate U.S. manufacturing of solar panels, batteries, and wind turbines, and $10 billion in tax credits to build clean technology manufacturing facilities that make electric vehicles, wind turbines, and solar panels.

Gottheimer has also helped claw back $35 million in federal funding last year for the Low-Income Home Energy Assistance Program (LIHEAP) to help low-income families afford their electricity bills.

Gottheimer was joined by Fort Lee Mayor Mark Sokolich, For Lee Councilwoman Ila Kasofsky, and Fort Lee Councilman Bryan Drumgoole.

Gottheimer’s full remarks as prepared for delivery can be found here:

Thank you to Ila and Fort Lee for welcoming us today. It’s upsetting, especially during the holiday season, to hear how increased utility costs are making life in Jersey more difficult for too many families across the state. The holidays are a time to spend with loved ones and to share gifts. Yet, just weeks before Christmas, thanks to the New Jersey Board of Public Utilities (BPU), many families got an early lump of coal in their stockings from their electric and gas providers. That lump of coal was a rate increase on their utility bills.

I’ve heard from many of my constituents around New Jersey.

Last month, with the Winter coming, the BPU approved new rate increases on heat usage, meaning that the more than half a million Jersey families in Monmouth, Ocean, Morris, Middlesex, and Burlington counties who get their gas from New Jersey Natural Gas, will see a nearly sixteen percent rate increase, or an annual bill increase of more than $240 on average. Yes, you heard me right, in this time of higher costs on everything from groceries, to housing, to child care and health care, the BPU approved a 16 percent rate increase on your utility bills. Really?

For the more than 300,000 Elizabethtown Gas Company customers in Union, Middlesex, Sussex, Warren, Hunterdon, Morris, and Mercer counties — they will see a six-and-a-half percent increase, meaning families could pay nearly $100 more annually — just as the cold air has set in.

And, this is during a time when many of the families and small businesses in these areas can’t get the power they need. We’ve seen brownouts during the summer and apartments that can’t let people move in because there is no power. So, it’s not as if all our utility providers in our great state are delivering a top-shelf product.

Keep in mind that this isn’t the only recent hit to families on their utility bills. In 2022, BPU approved rate hikes that cost New Jersey residents hundreds of dollars more for natural gas — as much as $31 per month, in addition to 25% more for electricity. Yes, that’s on top of this latest increase. Then, last year in 2023, PSE&G raised electric bills by 3.3 percent, JCP&L raised their rates by 4.8 percent, and Rockland Electric raised their rates by 6.9 percent. Earlier this year, PSE&G estimated a 9 percent increase for electric customers and a 12 percent increase for customers of both electric and gas — that’s an average of $25 per month more that doesn’t go toward food or diapers — right before we experienced the second hottest June in our state’s history. It’s just not right. We must make Jersey more affordable for families.

Now, I get that certain costs for utility providers have gone up. I also believe deeply that we need more capacity, and to reinforce the electric grid. That’s why I’ve always supported an all-of-the-above approach to power, and why I’ve been such an ardent champion of new, alternative energy and carbon capture for natural gas. I helped negotiate, write, and pass the Bipartisan Infrastructure Bill, which so far has provided Jersey with significant investment in our electric grid, climate resiliency, and clean energy technology. And I worked hard to pass the Inflation Reduction Act, which directs nearly $400 billion in federal funding toward clean energy — incluindg 11.4 billion dollars to New Jersey

But a 16 percent increase? Come on. New Jersey’s household bills are already 32 percent higher than the national average. We have to give hardworking families a break – not break their bank.

That’s why today I am announcing new action to protect our hardworking Jersey families from utility price hikes. My Plan to Lower Utility Bills will protect our families from unforeseen costs, and keep more money in the pocketbooks of Jersey families.

First and foremost, I’m calling on the BPU and utility providers to immediately reconsider their decision to raise utility rates on families. They will receive a letter from me today urging them to reconsider their recent price hike. We can’t allow higher prices right now on our utility bills. Families were already struggling with inflation before, we cannot ask them to suffer further.

Second, as a part of my Plan to Lower Utility Bills, I am introducing new federal legislation to help families with their utility bills.

That’s why, this week, I will be introducing the Energy Costs Relief Act, which will provide a refundable tax credit of up to $350 to help offset rising energy costs. This refundable tax credit will put money directly back into the pocketbooks of hardworking Jersey families, so that they don’t have to make the impossible choice between having heat — or having food.

We have repeatedly seen that, for too many, a $100 increase on their utility bill can mean the difference between either keeping the lights on or keeping food on the table. Rate increases are forcing families to decide that right now – and this new tax credit will help them.

This week, I’m also introducing the Know Your Rates Act in Washington, which mirrors legislation from State Senator John Burzichelli (BER-ZIH-CHEL-EE). This bill will require utility companies to directly notify customers by phone, email, or text after ten days into their billing cycle if their energy usage rises above their monthly average. They’ll then receive another notification after 20 days. This will help families adjust their usage or prepare for higher bills before it’s too late.

Heat pumps are an energy efficient way to save money on year-round heating and cooling, saving between $300 to $650 per year for the median US household. But, the cost to get one prevents too many from seeing these benefits. Heat pump systems can cost you between $7,000 to $15,000 to install, which is why only an estimated five percent of homes in New Jersey are using heat pumps for heating and cooling.

That’s why I am also introducing the Home Energy Assistance Tax Credit (HEAT) Act. This legislation will double the maximum Energy Efficient Home Improvement Credit allowed for energy efficiency upgrades, including residential heat pumps, to $4,000 per year. Currently, this federal tax credit is capped at $2,000 per year. With the prices of gas and heat skyrocketing, and the cost of installing a heat pump going way up, this tax credit will help ensure rising costs don’t leave our families in the cold.

Finally, in addition to protecting families financially when they encounter unforeseen cost increases, we must also improve our energy independence to prevent price hikes from happening in the first place. That will take more capacity and energy independence for our country and New Jersey. Electricity demand in the U.S. is on track to more than double between now and 2050, meaning our available energy sources will only become even more important. We will need more supply, or, as a net importer here in our state, we will end up relying on more surge capacity from other states, including West Virginia. And that means more dirty coal. Data centers built in New Jersey today demand twice as much power as just a few years ago, because of AI. And electric vehicles are also putting massive demand on the grid which will require more energy generation.

That’s why, as a part of my All-of-the-Above Energy Plan, I fought to increase and maximizing our use of alternative energies, including solar, and make our homes more energy efficient — because greater energy supply will mean lower costs for Jersey families. And why we will need a more resilient grid and carbon capture for natural gas.

We don’t have to choose affordability or sustainability. We can do both — and get gas and oil prices down right now. That’s why, as I mentioned earlier, the Bipartisan Infrastructure Bill included investments to prevent outages and make power grids like the one behind me more resilient. And the Inflation Reduction Act makes historic investments in expanding our renewable energy — including $30 billion in tax credits to accelerate U.S. manufacturing of solar panels, batteries, and wind turbines, and $10 billion in tax credits to build clean technology manufacturing facilities that make electric vehicles, wind turbines, and solar panels. I also helped claw back $35 million in federal for the Low-Income Home Energy Assistance Program (LIHEAP) to help low-income families afford their electricity bills. Investments like these are critical to help bring down consumer energy costs and build up the grid.

The bottom line: We can’t raise utility bills by sixteen percent when folks are already struggling. All across our state, I have heard the concerns — from families and small businesses saying: “I can’t afford my utility bills, I can’t afford rent, I can’t afford my healthcare or childcare.” To all our Jersey families who are struggling to pay their utility bills, our fight for affordability is just heating up.

I know that as long as we work together, here in the greatest country in the world, our best days will always be ahead of us. God bless you and may God continue to bless the United States of America.