NJ’s Nearly 20% Electric Rate Hike and What It Means for Your Holiday Light Bill

Summary

On June 1, 2025, Jersey Central Power & Light (JCP&L) customers saw their total monthly electric bills rise by roughly 19.6 to 20 percent — the steepest increase among New Jersey’s four regulated utilities. The driver was a wholesale capacity auction held by grid operator PJM in July 2024, which cleared at $269.92 per megawatt-day, nearly ten times the prior year’s result. That single auction outcome flows through to every kilowatt-hour on your December bill.

The timing matters for holiday decorating. A 100-count string of standard incandescent mini-lights draws about 40 watts; a comparable LED string draws roughly 4 to 5 watts. That ten-to-one wattage gap has always favored LEDs, but a nearly 20 percent rate increase makes the dollar difference larger than it was last Christmas. Run ten incandescent strings for six hours a night through December and you will spend meaningfully more on electricity than you would have in December 2024 — and roughly ten times more than if those same strings were LED.

The straightforward response for a New Jersey homeowner is to replace incandescent holiday strings with LED ones before the season begins, or to hire a professional installer who uses commercial-grade LED product. Either path cuts the wattage draw so sharply that the rate increase becomes almost irrelevant to your holiday light bill.

This post shows the math in detail, explains what drove the rate increase, and outlines what you can do about it — both this December and in the years ahead, when capacity costs are forecast to remain elevated.

What exactly happened to JCP&L rates on June 1, 2025?

Every year, the New Jersey Board of Public Utilities (NJBPU) runs an auction to set the Basic Generation Service (BGS) price — the supply rate that most residential customers pay if they do not choose a competitive supplier. The February 2025 auction produced results that increased the winning prices for all four of New Jersey’s regulated electric distribution companies, with changes taking effect June 1, 2025.

For JCP&L customers the impact was the largest of any New Jersey utility. According to FirstEnergy, JCP&L’s parent company, a typical customer using 777 kWh per month can expect their total bill to increase by 19.9 percent beginning June 1. A parallel analysis at electricityrates.com puts the figure at approximately 19.6 percent, or roughly $23 more per month for an average household. The NJBPU itself certified the BGS auction results on February 12, 2025, and then issued a formal order on rate mitigation in June 2025.

It is worth understanding what the BGS rate actually is. JCP&L does not generate electricity or control supply prices; it delivers electricity and collects supply costs on behalf of suppliers without any markup. The increase is entirely a pass-through of what the competitive wholesale market produced. That also means there is no regulatory process that can simply reverse it mid-year.

The supply (BGS) component is only one part of your total bill — delivery charges, transmission, and various riders make up the rest — but it is the largest single piece, and it is the piece that jumped. For December 2025, the JCP&L Price to Compare is posted at 14.61 cents per kWh, and when delivery and other charges are added, the all-in rate for a typical Monmouth County homeowner runs closer to 17 to 18 cents per kWh — the range used for the cost calculations throughout this post.

Why did wholesale electricity prices spike so dramatically?

The root cause sits one level upstream from New Jersey’s BGS auction: the PJM Interconnection capacity market. PJM operates the regional transmission grid serving New Jersey and 12 other states. Each year PJM holds a Base Residual Auction (BRA) to procure enough generation capacity to keep the lights on during peak demand periods roughly two years out. The results of that auction flow directly into what utilities pay for power — and therefore into your bill.

The July 2024 PJM capacity auction cleared at $269.92 per megawatt-day in most of PJM’s footprint — a nearly ten-fold increase from the previous auction, which had cleared at $28.92 per MW-day. That extraordinary jump was the direct input to New Jersey’s February 2025 BGS auction and is the reason your December 2025 bill looks so different from your December 2024 bill.

PJM attributed the price increase to three factors: decreased projected supply due to generator retirements, increased projected demand, and market design changes first implemented in July 2024. The demand side of that equation is driven heavily by data center construction across the mid-Atlantic — a trend covered in more depth in our earlier post on how AI data centers are raising New Jersey electric bills.

The outlook for future years is not encouraging. The July 2025 PJM auction for the 2026/2027 delivery year cleared at $329.17 per MW-day, hitting the FERC-approved price cap — another record. That result will feed into New Jersey’s next BGS auction and could push JCP&L bills higher still in June 2026. Our separate post on what JCP&L customers should expect in 2027 and 2028 goes into those projections in detail.

How many watts does a string of Christmas lights actually use?

This is where the rate increase becomes tangible at the outlet. The wattage difference between incandescent and LED holiday strings is not subtle. A string of 100 incandescent Christmas lights uses 40 watts of electricity. A comparable LED string draws approximately 4 to 5 watts total — a reduction of 80 to 90 percent.

To put that in kilowatt-hour terms: run one 100-count incandescent string for six hours a night through all 31 days of December and you consume about 7.4 kWh over the month (0.040 kW × 6 hrs × 31 days). At roughly 18 cents per kWh all-in, that is about $1.33 per string for the season. One LED string doing the same job at 4 watts consumes about 0.74 kWh and costs about $0.13. That ten-to-one difference holds regardless of the rate — but when the rate goes up 20 percent, the dollar gap between every incandescent string and its LED counterpart widens proportionally.

Most New Jersey homeowners do not put up one string. A modest exterior display might use ten strings; a larger roofline-and-shrub display often uses twenty or more. Ten incandescent strings (400 watts total) running six hours a night for December consumes roughly 74 kWh and costs about $13.30 at today’s rates — compared to about $1.33 for the LED equivalent. That $12 seasonal gap on ten strings is roughly $2 wider than it would have been at December 2024 rates, purely because of the June 2025 rate increase. Scale the display up to twenty or thirty strings and the rate hike’s contribution becomes a real line item.

EnergySage notes that a 6-foot Christmas tree typically requires at least 600 lights, consuming 240 watts with incandescent bulbs — that is six 100-count strings on a single tree. Add exterior lights and a typical decorated New Jersey home can easily reach 1,500 to 2,000 watts of incandescent load, versus 150 to 200 watts for the same display in LED.

What does the rate hike add to a real holiday light bill — with the math shown?

Here is a worked example using the figures discussed above. Assumptions: 15 incandescent strings (100-count mini-lights, 40 watts each) or their LED equivalents (4 watts each); lights on 6 hours per night; 31 days in December; all-in blended rate of $0.18 per kWh for December 2025; and a pre-hike rate of approximately $0.15 per kWh (backing out a 20 percent increase from the current rate).

• 15 incandescent strings at December 2024 rates: 15 × 40 W = 600 W = 0.600 kW. 0.600 × 6 hrs × 31 days = 111.6 kWh. 111.6 × $0.15 = $16.74 for the season.
• 15 incandescent strings at December 2025 rates: Same kWh. 111.6 × $0.18 = $20.09 for the season. The rate hike alone adds about $3.35 to a 15-string incandescent display.
• 15 LED strings at December 2025 rates: 15 × 4 W = 60 W = 0.060 kW. 0.060 × 6 × 31 = 11.16 kWh. 11.16 × $0.18 = $2.01 for the season.

Switching those 15 strings from incandescent to LED saves approximately $18 for the month of December 2025 alone — about $2 more in savings than the same switch would have yielded last December, because the rate increase amplifies every kilowatt-hour saved. For a heavy display where neighbors slow down to look, the seasonal cost difference between incandescent and LED can reach $100 or more. At today’s JCP&L rates that figure is higher than it has ever been.

This math applies only to the holiday lighting load. The same arithmetic runs on every other appliance in your home. The NJ rate increase is not a holiday-lighting problem — it is a whole-home problem that becomes visible in December because holiday lights are an optional, controllable load most homeowners can actually switch off or upgrade.

Why are commercial-grade LEDs better than store-bought strings?

Not all LED strings are equal. Consumer-grade LED strings sold at big-box stores are designed for a modest price point and limited outdoor duty. High-quality, professional-grade LED Christmas lights are rated for 25,000 to 75,000 hours of use, which translates to many holiday seasons without replacement. Consumer incandescent strings, by comparison, typically provide around 3,000 hours before failure.

Commercial-grade LED product used by professional installers also carries heavier-gauge wire, weatherproof sockets, and UV-stabilized housing suited to New Jersey winters. That means fewer mid-season outages, fewer replacement purchases, and consistent light output from the first night of Thanksgiving through the last night of the season. The higher upfront cost of commercial product is recovered through energy savings and longevity. The energy savings from switching to LEDs can make up the difference in as little as two to three seasons.

There is also a safety dimension. LEDs use up to 90 percent less energy than comparable traditional light strings and generate far less heat. Incandescent strings can reach surface temperatures above 150°F, which poses a measurable fire risk when draped over dry branches or stored near combustible materials. LEDs run cool enough to touch.

If you want to see what a professional LED installation looks like on homes in Monmouth County, the Green Sun featured clients gallery shows completed projects. Customer feedback on the quality of the work is available on the Green Sun client reviews page.

Should I hire a professional installer or buy LED strings myself?

Both options beat doing nothing and keeping incandescent strings. The right choice depends on your display scale, available time, and comfort working on ladders in November.

DIY replacement of store-bought LED strings works well for modest displays — a few shrubs, a railing, a small roofline section. The strings are widely available, the labor is manageable at one story, and the energy math pays off quickly. For a reference on how many strings a given facade actually requires, see our guide to Christmas light density for New Jersey homes.

A professional installation makes more sense for larger homes, rooflines above one story, complex architectural details, or homeowners who simply do not want to spend a weekend on a ladder in late November. A professional brings commercial-grade LED product, safe rigging, and removal service at the end of the season. The lighting stays consistent year to year without the homeowner storing, detangling, or replacing consumer-grade strings. Green Sun Energy Services provides professional Christmas light installation in Monmouth County using commercial LED product, and our holiday lighting page has further detail on what that service includes.

One practical note: professional holiday lighting slots book up well before Thanksgiving. If you are considering a professional installation for December 2025, the time to reach out is now rather than after Halloween. The same commercial-grade LED product that cuts your electricity bill also delivers a sharper, more uniform look than consumer strings — a visible difference once the lights go on.

What else can a NJ homeowner do to blunt rising electric rates?

Switching to LED holiday lights is one of the fastest, lowest-cost changes a homeowner can make — but it addresses only a small fraction of total annual electricity consumption. The same rate environment that inflates your December light bill affects heating, hot water, appliances, and EV charging year-round.

The most durable long-term hedge against rising JCP&L rates is generating your own electricity with rooftop solar. A solar array locks in a known cost per kWh for the life of the system, shielding that portion of your usage from future BGS auction results. New Jersey’s net metering rules allow homeowners to earn retail-rate credits for surplus generation, and the federal 30 percent residential solar tax credit — still available in 2025 — significantly reduces the upfront investment. Green Sun installs residential solar panels throughout Monmouth County; for context on the incentive timeline, see our post on acting before the 30 percent federal solar tax credit ends.

A Generac standby generator addresses a related but different concern: keeping the home running during the grid outages that become more likely as demand grows and infrastructure ages. And if you drive an electric vehicle or plan to, a properly sized home EV charger installed now gives you control over when and how much electricity you draw, making it easier to shift charging to off-peak hours and manage your bill. All of these decisions intersect with the same underlying reality: electricity in New Jersey is more expensive than it was last year, and the structural causes of that increase are not going away quickly.

Frequently Asked Questions

How much did JCP&L electric rates go up in 2025?

JCP&L rates increased by approximately 19.6 to 20 percent on June 1, 2025, adding roughly $22 to $23 per month to the average residential bill. The increase resulted from New Jersey’s annual Basic Generation Service auction, which was driven higher by a spike in PJM wholesale capacity prices. The NJBPU certified the auction results in February 2025 and the new rates took effect June 1.

How much electricity does a 100-count string of Christmas lights use?

A 100-count string of incandescent mini-lights uses about 40 watts. A comparable LED string uses approximately 4 to 5 watts — roughly one-tenth as much. Run at six hours per night for all of December, one incandescent string consumes about 7.4 kWh; one LED string consumes about 0.74 kWh.

How much money will I save switching from incandescent to LED Christmas lights in NJ?

At current JCP&L rates of roughly 18 cents per kWh all-in, a typical 15-string display costs about $20 for the month of December with incandescent lights and about $2 with LEDs — a savings of approximately $18 in a single season. At last year’s lower rates the same switch saved about $15, so the June 2025 rate hike has widened the gap by roughly $3 on a 15-string display.

What is the JCP&L Price to Compare for December 2025?

The JCP&L supply-side Price to Compare for December 2025 is posted at 14.61 cents per kWh. That figure covers the generation (supply) portion of your bill only; delivery charges, transmission, and other riders bring the total all-in rate higher. You can compare third-party supplier offers to that benchmark at njpowerswitch.gov.

Why are New Jersey electric rates so high right now?

The primary driver is the PJM Interconnection capacity market. The July 2024 PJM auction cleared at $269.92 per megawatt-day — nearly ten times the prior year’s clearing price — due to generator retirements reducing supply and surging demand from data centers and electrification. That wholesale cost flowed through to New Jersey’s BGS auction and into every customer’s bill starting June 1, 2025.

Are LED Christmas lights worth the higher upfront cost?

Yes, for most New Jersey homeowners. The energy savings alone typically recover the price difference within two to three holiday seasons, and professional-grade LED strings can last for many seasons beyond that. At today’s elevated JCP&L rates, the payback period is shorter than ever.

Will JCP&L rates go up again in 2026 or 2027?

Further increases are possible. The July 2025 PJM capacity auction cleared at $329.17 per MW-day — a new record and an increase from the 2024 result — which will feed into New Jersey’s next BGS auction. Whether and how much of that flows through to retail bills depends on the 2026 auction results and any state mitigation measures. Our post on JCP&L rate expectations for 2027 and 2028 covers those projections.

Does Green Sun Energy Services install Christmas lights in Monmouth County, NJ?

Yes. Green Sun installs commercial-grade LED holiday lighting on residential properties throughout Monmouth County. The service includes design, installation, and end-of-season removal. Details are on the Green Sun Christmas light installation page. Slots book up before Thanksgiving, so early contact is advisable.

The Bottom Line

The Bottom Line

JCP&L customers in Monmouth County are heading into their first full holiday season under rates that are roughly 20 percent higher than they were twelve months ago. That increase did not come from local decisions — it came from a national wholesale electricity market that is being reshaped by generator retirements and rapidly growing demand. There is no short-term fix at the policy level. What a homeowner can control is how many watts their house draws, and holiday lighting is one of the most straightforward places to act. Replacing incandescent strings with LEDs before Thanksgiving cuts the wattage load on that circuit by roughly 90 percent, turning what would have been a noticeable line item on the December bill into something close to rounding error.

If you would rather not manage the installation yourself — sourcing commercial-grade product, rigging rooflines, removing and storing everything in January — Green Sun Energy Services handles professional holiday lighting installation in Monmouth County. The same team that installs rooftop solar to reduce your year-round electricity costs can also make sure your December display is efficient, safe, and properly lit from the first night through the last. For homeowners thinking about a longer-term response to rising rates — solar, a standby generator, or a home EV charger — the Green Sun Energy Services website is a good starting point for understanding what each of those investments looks like in Monmouth County.

Sources & Additional Information

• Higher Electric Supply Prices Coming for New Jersey Customers — FirstEnergy / JCP&L
• Decoding Your JCP&L Bill: Understanding the June 1st Rate Hike — ElectricityRates.com
• Electric Bill Increases Due for NJ Customers — NJBiz
• Jersey Central Power and Light (JCP&L) — Price to Compare — ElectricityRates.com
• Figure 2: July 2024 PJM Capacity Market Clearing Prices — Congressional Research Service
• PJM Auction Procures 134,311 MW — 2026/2027 Base Residual Auction Results — PJM Inside Lines
• How Much Electricity Do Christmas Lights Use? — EnergySage
• Christmas Lights Power Consumption — Christmas Lights Etc.
• How Holiday Decorations Can Affect Your Energy Bill — Avista Connections
• Are LED Christmas Lights Cheaper to Run Than Incandescent Lights? — Christmas Designers
• Christmas Light Wattage: LED vs. Incandescent Lights — ElectricityPlans.com
• The Physics Behind LED Holiday Lighting — Technology.org