BPU Threatens JCP&L $44.1M, Citing Storm Reponse

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The state has opened an investigation into JCP&L’s response to the flooding and power outages caused by recent storms. PATRICK OLIVERO

By Sunayana Prabhu

TRENTON – The New Jersey Board of Public Utilities (NJBPU) is escalating existing enforcement proceedings against Jersey Central Power & Light (JCP&L) over years of alleged reliability failures, as illustrated by the July Fourth weekend thunderstorms that left thousands of residents without power for days.

At its July 15 meeting, the board took two actions. First, it reopened a show-cause order against JCP&L, with the potential for $44.1 million in fines for the reliability problems. It also appointed Commissioner Christine Guhl-Sadovy to preside over the hearings and expedite the case.

Secondly, the board launched a separate investigation into the utility’s response to storms July 3 and set an Aug. 12 deadline for the public to file motions to intervene or submit comments to hold the utility accountable.

The show-cause order requires JCP&L to answer for repeatedly failing to meet the state’s “Minimum Reliability Levels” in storm response and restoration from 2022 to 2024.

JCP&L’s statewide average customer response time “continued to worsen each year,” BPU stated in the August 2025 orders issued against JCP&L. In addition, the board alleged the utility company “failed to reasonably examine its equipment and circuits for causes of systemic outages and implement corrective measures,” as required by the state regulatory board.

JCP&L denied all but one allegation in its October 2025 response and argued against penalties.

NJBPU has been engaged in ongoing deliberations with JCP&L and the New Jersey Division of Rate Counsel to determine appropriate corrective actions.

According to details documented in the July 15 agenda, in April, BPU recommended the $44.1 million fine but JCP&L disputed the amount and said it would work toward “a balanced resolution that addresses the Board’s concerns, delivers direct and lasting benefits to customers, and preserves the Company’s ability to make the long-term investments necessary to support reliability and grid resilience.”

JULY 3 RESPONSE

During the July 15 meeting, BPU opened a separate investigation into JCP&L’s response to the July 3 storms. NJBPU oversees a network of four electric distribution companies that light up the statewide grid, including JCP&L, which serves about 1.1 million customers.

The four days of severe thunderstorms, damaging winds and flooding that hit New Jersey over the holiday weekend left about 230,000 JCP&L customers without power statewide, including nearly 50,000 in Monmouth County.

On BPU’s website, numerous residents and entities complained about prolonged outages during dangerous heat, inaccurate restoration estimates, and poor communication with municipalities. Residents also submitted comments describing spoiled food, homes without air conditioning during the heat wave and, in some cases, loss of power needed to run medical equipment.

“New Jersey residents deserve safe, affordable, reliable electric service, and this proceeding reflects the Board’s commitment to holding utilities accountable when they fail to meet our standards,” BPU President Ben Hertz-Shargel said in a July 15 statement. “We will continue to closely scrutinize JCP&L’s performance, take corrective actions, and use every tool available to defend utility customers across the state.”

Utility companies are required to submit post-event reports within 20 days of major storms. Parties seeking to intervene in either the reliability case (Docket No. EO25070453) or the storm response investigation (Docket No. EO26070387) must file by Aug. 12 through the BPU’s Office of the Secretary at board.secretary@bpu.nj.gov or through the board’s online filing system on NJBPU’s e-filing page at nj.gov/bpu/agenda/efiling.

JCP&L spokesperson Chris Hoenig said the company remains focused on improving reliability.

“JCP&L is committed to delivering safe, reliable electric service and we are investing more than $1 billion this year alone in enhancing reliability,” Hoenig said in an email to The Two River Times. “We’ve seen upwards of an 80% reduction in power outages in areas where we’ve made smart, strategic upgrades to our equipment and grid configuration.”

Hoenig said the July storms caused damage “comparable to those experienced during a hurricane” and that the company mobilized about “5,700 personnel” from across the eastern United States to restore service.

This article originally appeared in the July 30 – August 5, 2026 print edition of The Two River Times.