Have you opened your electric bill recently and wondered, “How could it possibly be this high?”

You are not alone.

Homeowners throughout Cherry Hill, Marlton, Mount Laurel, Voorhees, Pennsauken, Maple Shade, Sicklerville, and other South Jersey communities are feeling the impact of higher electricity costs, especially during the hottest months of the year.

Air conditioning use is certainly part of the problem, but it is not the only reason electric bills have increased. Changes in wholesale energy prices, growing demand for electricity, major infrastructure expenses, and the rapid expansion of data centers are also affecting what New Jersey residents pay.

The good news is that New Jersey has approved new electric bill credits for residential customers.

Why Have New Jersey Electric Bills Increased So Much?

A major increase took effect on June 1, 2025, after New Jersey’s annual electricity supply auction.

According to the New Jersey Board of Public Utilities, average residential electric bills were projected to rise between approximately 17 percent and 20 percent, depending on the utility company. The state attributed the increase partly to higher regional capacity costs, growing electricity demand, delays in connecting new power sources to the grid, and problems within the PJM regional electricity market.

For Atlantic City Electric customers, which include many South Jersey residents, the estimated average monthly bill for a household using 650 kilowatt hours increased by approximately $28 in 2025.

Even though the 2026 electricity auction produced much smaller changes, consumers are still paying bills that reflect the large increase that occurred the previous year. For the rate period beginning June 1, 2026, the estimated change for an average Atlantic City Electric residential customer was only 22 cents per month. PSE&G customers were projected to see a small decrease in the electricity supply portion of their average bills.

In other words, rates may not have jumped dramatically again this year, but they remain high.

Summer Weather Can Make the Increase Feel Even Worse

During a South Jersey heat wave, an air conditioning system may run for hours without stopping.

Older air conditioners, poor insulation, leaking windows, clogged filters, high thermostat settings, pool pumps, dehumidifiers, electric water heaters, and appliances that are always plugged in can all increase household electricity use.

A bill can be especially surprising when higher usage is combined with today’s higher electricity rates.

Before assuming there is a billing mistake, compare the number of kilowatt hours used this month with the same month last year. The total dollar amount may be higher because you used more electricity, because the rate increased, or because of a combination of both.

New Jersey’s $25 Electric Bill Credit

The New Jersey Board of Public Utilities approved a new Residential Universal Bill Credit for 2026.

Every eligible residential customer with an existing electric account through Atlantic City Electric, PSE&G, Jersey Central Power & Light, or Rockland Electric is scheduled to receive a one time $25 credit during August 2026.

The credit will be applied directly to the customer’s electric account. It is not expected to arrive as a separate check, and residential customers should not need to submit an application.

Homeowners and renters who pay their own electric bills should check their August statement for the credit.

Some New Jersey Households May Receive an Additional $150

New Jersey has also approved another round of assistance through the Residential Energy Assistance Payment program, commonly called REAP.

Qualifying households may receive three monthly credits of $50 during:

1. August 2026

2. September 2026

3. October 2026

The maximum additional credit is $150.

Eligibility is based on criteria connected to New Jersey’s utility termination protection programs. Utilities will identify qualifying accounts, so the state’s order does not require eligible households to complete a separate REAP application.

A qualifying household will receive the credit on either its electric bill or its gas bill, but not both.

Why Are Data Centers Being Mentioned in Discussions About Electric Bills?

Data centers are large facilities filled with computer equipment used to operate websites, artificial intelligence systems, cloud storage, streaming platforms, and other digital services.

These facilities can require enormous amounts of electricity.

New Jersey officials have identified data center growth as one of the factors increasing demand on the regional electric grid. The state recently approved legislation intended to make large data centers contribute toward the energy and infrastructure costs associated with their operations instead of shifting those costs to families and small businesses.

The legislation does not mean household electric bills will suddenly fall. Increasing power generation and upgrading the electric grid are long term projects. However, the new rules are intended to provide greater oversight and protect residential customers from paying an unfair share of future costs.

What Can South Jersey Homeowners Do to Lower Their Electric Bills?

The $25 credit will help, but most homeowners will need to look for additional ways to reduce their monthly energy use.

Start with a few practical steps:

Check Your Air Conditioning Filter

A dirty filter can restrict airflow and force the system to work harder. During the summer, filters may need to be checked more frequently.

Adjust the Thermostat Gradually

Turning the thermostat extremely low will not cool the home faster. It may simply keep the air conditioner running longer.

Close Blinds During the Hottest Part of the Day

Sunlight coming through uncovered windows can quickly raise the temperature inside a home, especially in rooms facing south or west.

Use Ceiling Fans Correctly

Fans can make people feel cooler, but they do not lower the actual room temperature. Turn them off when no one is in the room.

Check Doors and Windows for Air Leaks

Small gaps can allow cooled air to escape. Weather stripping and basic sealing may provide an affordable improvement.

Have Older Systems Serviced

An air conditioner that is struggling, making unusual noises, or running constantly may need maintenance or replacement.

Review the Entire Utility Bill

Look at the electricity supply rate, delivery charges, meter reading, total usage, and whether the reading was actual or estimated. Residents who believe there is an error should contact their utility company directly.

Additional Help Is Available for New Jersey Residents

New Jersey offers several utility assistance programs, including the Universal Service Fund, LIHEAP, Lifeline, PAGE, Fresh Start, NJ SHARES, and Comfort Partners.

The state’s Summer Termination Program also protects certain qualifying households from electric, water, and sewer shutoffs from June 15 through August 31, 2026. Customers must contact their utility company to request protection, and unpaid balances will still remain due after the protection period ends.

Anyone having difficulty paying a utility bill should contact the utility company as soon as possible rather than waiting until the account is severely overdue.

Energy Efficiency Can Also Affect Your Home’s Value

Today’s homebuyers are paying closer attention to the cost of owning a home.

An older heating and air conditioning system, poor insulation, drafty windows, an aging water heater, or unusually high utility bills may become part of a buyer’s decision. On the other hand, a newer HVAC system, updated windows, good insulation, a smart thermostat, and lower operating expenses can make a property more attractive.

That does not mean every homeowner should complete expensive renovations before selling. The right improvements depend on the home’s condition, price range, neighborhood, and local buyer expectations.

An experienced local real estate agent can help you determine which improvements may increase marketability and which ones may not provide a worthwhile return.

Thinking About Selling Your South Jersey Home?

For 31 years, I have helped homeowners throughout Camden, Burlington, and Gloucester counties prepare, price, market, and sell their properties.

I understand that the cost of maintaining a home is becoming an increasingly important concern. Rising electric bills, property taxes, insurance costs, repairs, and maintenance may cause some homeowners to reconsider whether their current home still fits their needs.

Whether you are thinking about downsizing, moving out of state, selling an investment property, handling an estate sale, or simply wondering what your home may be worth, I would be happy to provide honest local guidance.

Contact Michaela Hartery of Peze & Associates Realtors for a confidential conversation about your South Jersey home and today’s real estate market.

Your home may be worth more than you realize, and knowing your options is always a good place to start.

This article is intended to provide general information. Utility programs, eligibility requirements, and credit amounts may change. Contact your utility company or the New Jersey Board of Public Utilities for information about your individual account.