Residential Rates to Remain Lowest Among
the State's Regulated Electric Utilities
HOLMDEL,
N.J., March 16, 2023 /PRNewswire/ -- Jersey
Central Power and Light (JCP&L), a subsidiary of FirstEnergy
Corp. (NYSE: FE), today requested a review of its base electric
rates by the New Jersey Board of
Public Utilities (BPU). The proposed rate adjustment supports an
approximately $185 million investment
that strengthens the energy grid, enhances the customer experience
and funds new low-income and senior citizen customer assistance
programs.
Upon approval of the base rate adjustment, JCP&L customers
would continue to pay the lowest residential electric rates among
New Jersey's four regulated
electric distribution companies. The typical JCP&L residential
customer, using 780 kilowatt hours per month, would see a 7.5%
percent overall rate increase – or $8.45 monthly.
"Our proposal balances our need to invest in a safe, reliable
and modern grid while keeping rates affordable for our customers,"
said Jim Fakult, president of
New Jersey operations for
FirstEnergy. "This plan keeps JCP&L's rates the lowest in the
state and offers additional assistance to our customers facing
financial hardship."
Since its last rate review in 2020, JCP&L has made more than
$794 million in investments to
modernize and strengthen its electric grid. These investments
help to reduce the size and length of power outages. They include
the installation of devices that can sense an outage and
automatically transfer customers onto an adjacent circuit limiting
the number of customers that experience a long-duration outage,
upgrades to company substations in Monmouth, Ocean and Morris counties that provide for additional
capacity and redundancy and expansion of a substation to
accommodate significant growth in electric demand in Ocean County. Approval of the Company's
proposal would help ensure investments that modernize and
strengthen the grid continue.
In addition, the rate review proposes the launch of two new
customer assistance initiatives. A Senior Citizens Discount Program
would provide income-eligible seniors with a discount on
JCP&L's distribution charges averaging $15 monthly, applied as a credit on the monthly
bill for their primary residence. In addition, an Energy Assistance
Outreach Team will be created to enhance the Company's ongoing
efforts to increase awareness, education and participation in
energy assistance programs available to eligible customers.
Because falling trees and tree limbs remain a leading cause of
power outages, the proposal also includes an increase of more than
$10 million per year in the Company's
budget to maintain trees located outside of company rights-of-way
that pose a threat to power lines. The funding would also allow
removal of additional trees damaged by the emerald ash borer that
are a potential threat to power lines.
The filing also includes the recovery of costs incurred by
JCP&L from the impact of major storms, including Tropical Storm
Isaias, the remnants of Hurricane Ida, 2021's bow echo, Winter
Storms Zeta and Elliott and other weather-related events. JCP&L
has taken steps to reduce this balance, such as applying proceeds
from its sale of the Yards Creek Pumped-Storage Generating
Facility.
Other items supported by the rate review include a program to
begin transitioning streetlights from outdated, costly sodium vapor
lights to energy efficient LED streetlights, with optional smart
features that give municipalities more control of the fixtures.
Costs associated with the transition to a new "smart electric
meter" system and JCP&L's electric vehicle charging program,
which are designed to support the state's clean energy goals, are
also included in the submission.
JCP&L serves 1.1 million customers in the counties of
Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren. Follow JCP&L on Twitter @JCP_L, on
Facebook at www.facebook.com/JCPandL or online at
www.jcp-l.com.
FirstEnergy Corp. is dedicated to integrity, safety,
reliability, and operational excellence. Its 10 electric
distribution companies form one of the nation's largest
investor-owned electric systems, serving customers in Ohio, Pennsylvania, New
Jersey, West Virginia,
Maryland, and New York. The company's transmission
subsidiaries operate approximately 24,000 miles of transmission
lines that connect the Midwest and Mid-Atlantic regions. Follow
FirstEnergy online at www.firstenergycorp.com and on Twitter
@FirstEnergyCorp.
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SOURCE FirstEnergy Corp.