New Jersey’s Governor Takes Action on Utility Bills

After taking office on Tuesday, Democratic Rep. Mikie Sherrill immediately signed two executive orders intended to curb escalating utility bills and declare a state of emergency for power generation expansion.

The aim here is to tackle the rising electric costs in the state, which have jumped by around 20% for some households over the summer. This issue is quickly becoming a hot topic for the upcoming 2025 election.

In her first executive order, Sherrill empowered the state Public Utility Commission to intervene against these price hikes. This includes provisions for state funds to offer credits to residents experiencing increased electricity costs—a move reminiscent of a similar initiative by former Governor Phil Murphy.

The order also mandates the Board of Public Utilities (BPU) to suspend or change policies if utility companies attempt further increases.

However, not everyone is on board with these measures. Alex Stevens, a manager at the Institute for Policy Communications, criticized the approach, calling it possibly the worst energy policy proposed by a politician that he’s witnessed. He emphasized that price signals are crucial in aligning supply and demand, and argued that imposing price controls can obscure the necessary information for energy production adjustments.

Brendan Pierpont, director of power modeling at AtEnergy Innovation, counters that the concern about potential shortages due to a utility freeze is based on misunderstanding. He points out that electricity pricing is influenced by regulatory mechanisms and complex market frameworks.

The second executive order marks a state of emergency, urging state agencies to expedite the approval of new energy initiatives. This includes the formation of a nuclear power task force and a push for solar and battery projects, aimed at cutting down bureaucracy and streamlining processes to expedite energy generation.

Despite some potential advantages in Sherrill’s plan to expand power generation, Stevens remains critical of her emphasis on clean energy. Sherrill has expressed readiness to challenge her own party if needed to achieve her goals for New Jersey’s energy landscape.

Pierpont highlighted the pressing financial strain many households are under, particularly concerning regulated electricity and natural gas rates. He’s also vocal about issues with PJM, the regional grid operator serving New Jersey, citing inefficiencies in their process that slow down new energy project approvals.

Alex Ambrose from New Jersey Policy Perspectives pointed out that delays in interconnection queues are hindering new green energy developments, with some projects facing wait times of up to five years just to get started.

The need to balance energy supply is further complicated by the fact that older power plants are being decommissioned at a rate that matches the arrival of new plants. For context, New Jersey saw the closure of its last coal-fired facility in 2022.

Sherrill’s executive orders highlight a troubling trend: residential electricity rates in New Jersey are reported to have surged more than 33% between June 2023 and June 2025, while PJM capacity prices escalated by over 800% in 2024.

This spike in electricity rates isn’t just isolated to New Jersey; it reflects a nationwide trend where electricity costs went up about 5.5% last year, outpacing inflation. This has been partly attributed to factors like the rise of artificial intelligence.

Still, experts assert that the situation in New Jersey is particularly serious, with the state’s electricity usage falling behind consumption rates, leaving it reliant on neighboring states for power.

Currently, New Jersey holds the 12th highest residential electricity rates in the country. As noted by Jason Isaac from the American Energy Association, the state lacks sufficient power generation capacity, necessitating imports from states like Pennsylvania, which raises costs.

According to data from the U.S. Energy Information Administration, nearly a fifth of New Jersey’s electricity will come from outside the state in 2023.