Relief Or Band-Aid? NJ Approves $100 Electric Credits While Rates Skyrocket

As New Jersey residents swelter through their fourth heat wave since June, the state’s Board of Public Utilities has approved a $100 credit for all residential electric customers. The money will hit accounts in two $50 installments—September and October 2025. No applications necessary. The cash appears automatically. Magic.

The credits come as electricity prices surge across the Garden State. Wholesale rates jumped 20% in June, with another 5% hike expected next summer. Thanks, AI data centers and your insatiable appetite for juice.

All 3.9 million residential customers of PSE&G, ACE, JCP&L, and RECO will receive the credits regardless of income or payment history. Even if you’re swimming in cash or behind on bills, you’ll get your hundred bucks. Equal opportunity relief.

The $385 million program draws from two funding pools: $263 million from Solar Alternative Compliance Payment funds (basically penalties paid by suppliers who didn’t meet renewable standards) and $123 million from Regional Greenhouse Gas Initiative auction proceeds. Your relief is funded by other people’s failures to go green. Ironic.

This follows two $30 credits already distributed in July and August. Those are being recovered without interest. The state giveth, the state taketh away.

Officials aren’t pretending this solves the underlying problem. Commissioner Christodoulou admitted it plainly: “This should be helpful for people, but in no way solves the problem.” At least someone’s being honest.

The timing isn’t random. September and October still bring heat—and high bills—for many households. Plus, the credits align with the Winter Termination Program timeline, offering a cushion as colder months approach.

Critics note these credits are merely temporary bandages on a gushing wound of energy affordability. Structural issues remain unaddressed: renewable supply bottlenecks, wholesale price volatility, and infrastructure needs.

Meanwhile, the thermometer keeps climbing, and so do the bills. Recent data shows electric costs have increased by 17 to 20 percent across all major utilities in the state. The growing demand from AI data centers consuming millions of liters of water daily for cooling further strains regional resources. Low-income ratepayers will receive additional 175 bill credits spread over seven months from August to February 2026. A hundred bucks helps. But next summer? You might need more than credits to keep cool.