For Immediate Release:	Contact: Alonza Robertson
Date: 06/18/2025	212-920-1679

Action part of comprehensive effort to mitigate impact of rising energy costs

 

TRENTON N.J. – JUNE 18, 2025 – The New Jersey Board of Public Utilities (BPU) today approved enhancements to the state’s Universal Service Fund (USF) program, offering significantly increased monthly credits on income-eligible gas and electric bills. Administered by the New Jersey Department of Community Affairs (NJDCA), USF provides credits to 226,000 households’ energy bills during the last program year.

 

These changes, set to take effect October 1, 2025, represent the Murphy Administration’s commitment to ensuring energy affordability for hundreds of thousands of low-and-moderate income (LMI) households across the state. The decision follows a comprehensive energy affordability assessment and feedback from stakeholders.

 

The approved modifications will bolster the USF’s effectiveness by increasing both the minimum and maximum benefit amounts, mandating greater engagement from utility companies in enrolling eligible residents, and promoting better coordination with other energy efficiency efforts assistance programs.

 

“The BPU is committed to proactively addressing the energy affordability challenges facing New Jerseyans,” said NJBPU President Christine Guhl-Sadovy. “These approved modifications to the USF represent a significant step forward in providing meaningful relief to those who need it most. By raising the benefit levels and requiring our utility partners to actively connect eligible households with this crucial support, we are meeting the urgency of the moment and working to ensure that no resident is forced to choose between heating their home and meeting other essential needs.”

 

Today, the Board also approved stipulations delivering bill deferment and a slate of other customer protections that will be implemented by the State’s four investor-owned electric utilities.

 

"These enhancements to the Universal Service Fund represent a meaningful expansion of our commitment to helping New Jersey families manage their energy costs," said New Jersey Department of Community Affairs Commissioner Jacquelyn A. Suárez. "By quadrupling the minimum benefit from $5 to $20 per month and requiring utilities to actively help eligible residents enroll, we're ensuring this vital program reaches more families who need support. Our goal is to make energy assistance accessible and impactful for the thousands of households who are struggling with rising utility bills.”

 

"As energy costs rise at an unsustainable rate, it is important that any and all assistance available to our most vulnerable residents be provided,” said Kelvin Boddy, HCDNNJ Healthy Homes and Communities Director. “We are glad to see that NJBPU has recognized this need and responded by increasing the level of monthly assistance available for low-to-moderate income residents, and to set goals for the enrollment levels of these programs themselves. These steps will help in ensuring that available utility assistance is known and accessible to as many New Jersey households as possible. Residents in every community deserve healthy, safe homes and communities. Having affordable heating and cooling options are essential to our most vulnerable neighbors”.

 

Key improvements to the Universal Service Fund include:

• Substantial Increase in Minimum Benefit: The minimum monthly USF credit for both gas and electric accounts will rise from $5.00 to $20.00.
• Enhanced Maximum Benefit: The highest possible combined monthly USF credit for gas and electric services will increase from $180.00 to $200.00.
• Enrollment Increase Targets: Electric and gas utilities will be required to meet specific enrollment increase targets during the next three years through active outreach efforts.
• Reporting: The Utilities will file annual outreach plans and annual outreach reports regarding their plan for meeting their enrollment targets and their performance.
• Utility Engagement in Application Process: Utility companies will play a more direct role in assisting customers with USF applications at their payment centers.
• Strategic Cross-Promotion of Utility Assistance and Energy Efficiency Programs: Utilities will be mandated to actively promote both the USF and the Comfort Partners program which provides eligible residents with free home energy audits and energy efficiency upgrades.

 

These enhancements are projected to impact 136,000 current USF recipients who receive the minimum benefit, leading to a significant increase in their monthly assistance. An additional 8,000 households, near the maximum benefit, are estimated to also see an increase in their combined support. The goal of the mandated utility enrollment efforts is to reach a significant portion of the estimated 80% of income-eligible New Jersey households not currently taking advantage of the USF program’s benefits.

 

The estimated annual budget impact of these changes is approximately $28.5 million, representing a 12.06 percent increase in current program costs. The NJBPU is using existing funding to cover program enhancement costs, and there will be no ratepayer impact.

 

This represents another step the Murphy Administration has taken to address rising energy costs spurred by grid operator PJM Interconnection’s recent capacity auction. Earlier this month, Governor Murphy, legislative leadership, and the NJBPU unveiled more than $430 million in direct bill assistance to all residential ratepayers. In April, the Board required the state’s electric distribution companies to submit distribution-side cost mitigation filings to help prevent the rate shock of price increases during high usage summer months.

 

Last year, New Jersey’s energy assistance programs provided approximately $295 million to more than 455,000 families. Additionally, the Board unveiled the Residential Energy Assistance Payment (REAP) initiative, which disbursed over $48.7 million via a one-time $175 bill credit for over 278,000 qualifying households. This is on top of recent and yearslong efforts to expand clean energy, reduce costs, and put affordability within reach for ratepayers, including the Community Solar Energy Program which delivers a minimum of 15% savings for all ratepayers who subscribe to a community solar project, and investments in energy efficiency which have saved ratepayers a minimum of $600 million on utility bills, or the over 127,000 households that received free services via the highly-successful Comfort Partners program.

 

Building on its commitment to affordability, the NJBPU will launch a second iteration of the Residential Energy Assistance Payment (REAP) program on August 1st, providing $150 in direct financial relief to eligible households through six $25 bill credits. Similar to the initial 2024 REAP program, which offered a one-time $175 credit, this initiative automatically applies assistance to the utility bills of those already enrolled in existing programs like the Winter Termination Program (WTP), LIHEAP, or Universal Service Fund (USF), or facing other severe financial hardships. This targeted approach ensures aid reaches low-income residents and vulnerable populations, directly easing their utility burden and enhancing affordability across New Jersey without requiring a separate application.

 

The BPU remains dedicated to ensuring a smooth transition and will work closely with NJDCA and utility partners to implement these changes effectively. Additional information regarding the enhanced USF program will be made available to residents in the coming months. If you or someone you know needs assistance with their energy bills, contact the BPU before you are faced with a service disruption.

There are several assistance programs available for utility customers: the Universal Service Fund, Fresh Start Program, Payment Assistance for Gas and Electric (PAGE) Program, Low Income Home Energy Assistance Program, Lifeline, NJ Shares, and NJ Comfort Partners. Additionally, the Winter Termination Program is a utility-led program that protects qualifying ratepayers from service disruption during the winter months, from November 15 until March 15. A more detailed description of these programs, as well as the requirements and guidelines can be found on the NJBPU’s website at BPU Assistance Programs. 

 

New Jersey Board of Public Utilities

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.