New program protects New Jersey residents from summer utility shutoffs

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Residents in New Jersey struggling to pay their utility bills could be spared from water and electricity shutoffs this summer through a new relief program.

The state’s Summer Termination Program protects eligible residents from electric, water and sewer shutoffs between June 15 and August 31.

“In extreme temperatures, power shutoffs are not just a financial hardship, they threaten health and safety, particularly for children, seniors, people with chronic conditions, and those living in poorly insulated homes,” said state Sen. Raj Mukherji, who sponsored legislation to prohibit shutoffs, in a statement. “Electricity for cooling is not a luxury in scorching conditions; it is a lifeline.”

The initiative comes as the price of electricity is soaring. Though freezing weather conditions contributed to high utility bills this past winter, rate hikes have also been driven by a supply-and-demand imbalance, increased power demand from data centers and slow construction of new energy-generation infrastructure.

In 2024, there were 128,828 electricity shutoffs in New Jersey, according to a federal report. Since then, electricity rates have increased by more than 16% in the state, according to a U.S. Senate committee report.

Water bills are also on the rise, as the U.S. Environmental Protection Agency estimates water providers need more than $1 trillion to upgrade water and wastewater infrastructure.

According to the EPA, between 12.1 million and 19.2 million households across the nation struggled to pay their water bills in 2024.

In New Jersey, one-fifth of households have challenges paying their water bill, according to a report by Rutgers University and New Jersey Future. A report from the Natural Resources Defense Council found that 57,000 households served by private water companies in the state had their water shut off between 2019 and 2024.

State officials say preventing shutoffs is crucial as climate scientists predict longer and more intense heatwaves in the coming years. Heat is the leading weather-related cause of death in the U.S., and between 2000 and 2020, nearly 200 people in New Jersey died from heat stroke.

“As summers get hotter and longer, New Jersey joins the many states that help protect people from the brutal heat. While each state tailors its program to local conditions and needs, we all share the same fundamental goal: ensuring that no family loses access to cooling or water during the summer months.” said New Jersey Board of Public Utilities President Christine Guhl-Sadovy in a statement. “New Jersey’s comprehensive approach — covering essential services in both winter and summer — represents one of the most expansive protections in the nation.”

The state’s BPU and Department of Community Affairs established the rules for the program after lawmakers passed a bill last year to prohibit utilities from disconnecting ratepayers during the hottest temperatures.

Who is eligible for the Summer Termination Program?

The summer program is available for New Jersey residents who are enrolled in a number of bill assistance programs, including the federal Low-Income Home Energy Assistance Program, or LIHEAP, which helps households struggling to pay their energy bills.

The new initiative is similar to the state’s Winter Termination Program, which protected about 283,738 ratepayers from shutoffs during the 2024 to 2025 winter season.

Residents facing certain hardships like unemployment, illness or the death of a family member may also qualify.

People struggling to pay their utility bills this summer must contact their utility company and inform them of their qualification, either verbally or by submitting a self-certification form. Ratepayers can negotiate a payment plan that best meets their needs.

“The summer termination program is very beneficial in protecting the residents of New Jersey during the hot summer months. It provides nine different categories of protection that people can fall into,” said Rich Lambert, director of the BPU’s division of customer assistance.

“We ask customers who are either shut off or who are in danger of being shut off to call their utility and claim summer termination protection. At that time, the utility will negotiate with the customer to set them up on the summer termination payment plan, which will fit their economic needs at the current time.”

Ratepayers protected by the Summer Termination Program will be responsible for their unpaid bills when the program wraps up for the summer season.

“We definitely tell the customers to pay what they can on their bill each and every month. We also provide customers with financial assistance opportunities and show them places that they can apply and we ask that they follow through on those,” Lambert said. “That way, once the protection program is over, if they have been paying their bill to the extent possible and applying for assistance, that will go a long way in maintaining service once the protection period is over.”