Modernizing the Power Grid

While a national dialogue on re-investing in America’s infrastructure is just starting to take shape, Jersey Central Power & Light (JCP&L) is already moving forward with major upgrades to our power grid that will keep energy flowing to our customers for years to come.
Since 2012, JCP&L has invested nearly $612 million in its local delivery system. These enhancements helped us achieve our best service reliability metrics in more than a decade last year, including a 33 percent reduction in system outage duration and a 19 percent improvement in customer restoration times.
But more can be done. We’re now focused on modernizing the backbone of our electric grid – the transmission system. JCP&L is committed to strengthening and modernizing this vital link to our energy sources while managing the financial and environmental impacts on our customers and communities.
Over the years, we have efficiently maintained the power grid while holding the line on transmission rate increases. However, our transmission rates were last adjusted in 1998 and no longer reflect today’s costs. Appropriate rates allow us to continue enhancing service reliability, adding redundancy to the power grid, modernizing our facilities and equipment, and increasing physical and cyber security to protect our transmission system and ensure it performs as designed.
In November, we filed new transmission rates to support more than $170 million in necessary grid investment across our service territory. The new rates will increase a residential customer’s aver- age monthly bill by about $2. With these investments, a stronger, more intelligent grid is taking shape, driven by new technologies that can detect and resolve transmission system outages faster so our customers can keep up with their busy lives.
The new rate structure, known as forward-looking formula rates, is becoming the industry standard among electric utilities because it allows for more timely investments in the transmission sys- tem. In fact, formula rates are already used by other New Jersey regulated electric utilities. A forward-looking rate reflects the current costs, plus the projected costs of new projects to be completed in the coming year. But by no means is this a blank check. The Federal Energy Regulatory Commission (FERC) must approve the decision to implement forward-looking rates, and the rates will be reviewed and adjusted to reflect the actual costs that were prudently incurred each year. In addition, many of our projects will still require siting approvals by the N.J. Board of Public Utilities.
We encourage FERC to approve our transmission rate request and will continue to work closely with key stakeholders across the state to demonstrate the value of shaping a 21st century power grid that will keep New Jersey energized and connected.