Before you turn on that air conditioner, here's how much JCP&L electric rates are going up
Get ready for a sticker shock when you open up your electric bill.
New electric rates from Jersey Central Power & Light, both for the wholesale supply of electricity that powers your house to the rate that pays for electric network upgrades and repairs, will rise on June 1.
It will boost the total monthly bill for an average JCP&L customer by 14.1%, a utility spokesperson said. As of June 1, the average monthly bill, based on a customer who uses 777 kilowatts a month, will rise from $117.54 to $134.13, up $16.59.
Of the 14.1% increase, 8.7% or $10.19, represents the increase in the cost that JCP&L pays for wholesale electricity, which is passed through to customers.
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The remainder comes from a rate hike approved by state regulators earlier this year. It will allow the utility to recoup its costs for repairing the electric system that was damaged by storms and to upgrade 18 underperforming electric circuits, including new poles and wires, spokesperson Christopher R. Hoenig said.
"With the increase in supply charges accounting for the largest portion of this increase, customers may be able to save money with a competitive energy supplier," Hoenig said in a statement. "We encourage customers to go to the BPU’s NJ Power Switch website and use the price to compare from their bill to see if a third-party supplier is right for them."
Meanwhile, FirstEnergy Corp. on Tuesday announced that JCP&L President Jim Fakult has decided to retire after leading the Holmdel-based utility for 11 years. Doug Mokoid, an executive from Atlantic City Electric/Delmarva Power, was appointed president of JCP&L, effective June 17, the company said.
Fakult, who has had a 37-year career at FirstEnergy, will remain with the company through Sept. 1 as Mokoid transitions into his new role, the company said.
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"I thank Jim for his many contributions during his career at FirstEnergy," said Wade Smith, president of FirstEnergy Utilities, in a statement. "Through his leadership at JCP&L and his extensive involvement in business and community initiatives, Jim has made a positive difference for our customers."
In November, JCP&L said it wanted to pump $935 million in into its electric infrastructure across its 13-county service area in New Jersey, including Monmouth and Ocean counties, and submitted its plan to the New Jersey Board of Public Utilities for approval.
It is the largest project the utility has ever undertaken on its distribution network, the network of wires, devices and transformers that bring electricity to its 1.1 million customers. It follows an investment of $100 million around 2020.
It includes heavier overhead wires and stronger utility poles, upgrades to substations and circuits, and other enhancements to modernize the network.
"It starts with reliability. It starts with resiliency," Fakult told the Asbury Park Press last December. "I'm very confident in the improved quality of service our customers are going to see."
It will be up Mokoid, wo has served as region president of Atlantic City Electric, an Exelon utility that serves South Jersey, including southern Ocean County, to see the project through the rest of the regulatory process and to completion.
David P. Willis: dwillis@gannettnj.com
This article originally appeared on Asbury Park Press: JCP&L raising electric rates as of June 1
