The utility that serves Summit, New Providence, Berkeley Heights, Chatham and Madison is one step closer to a $44.1 million state penalty after New Jersey regulators accused Jersey Central Power & Light (JCP&L) of failing to meet reliability standards for three straight years.

The state Board of Public Utilities voted July 15 to move the case into a formal hearing process, though no fine has been issued and no hearing date has been set.

The action follows years of worsening service.

According to the BPU, JCP&L's average outage restoration time climbed from about 119 minutes in 2022 to 160 minutes in 2024. At the same time, the average customer experienced more outages, rising from 1.46 outages per year to 1.95 over the three-year period.

The utility's own 2024 annual report also showed a 10-year high in outages caused by equipment failures, trees, animals and lightning.

State regulators argue JCP&L failed to do enough to keep the lights on, alleging the company lacked adequate maintenance, inspections and system reviews needed to prevent recurring outages.

JCP&L denies the allegations and says the proposed penalty is excessive.

The utility has told regulators it wants to reach a resolution that would provide "direct and lasting benefits to customers" while allowing continued investment in improving the electric grid.

For many residents, the case puts official scrutiny behind complaints they've voiced for years.

A June report by nj21st documented more than 410 reported outages affecting New Providence and Berkeley Heights. One Berkeley Heights homeowner told the outlet his family has experienced more than 50 outages since moving there in 2009, including nine over the past year and a half.

While those reports aren't part of the state's case, they reflect the reliability concerns many customers across Union and Morris counties continue to face.

The case now moves to a formal hearing before the Board of Public Utilities. Organizations and municipalities have until Aug. 12 to ask to participate before testimony and evidence are scheduled.

JCP&L, a subsidiary of FirstEnergy, provides electric service to roughly 1.2 million customers across 13 New Jersey counties, including much of the Summit area.