Photo: bymuratdeniz / iStock / Getty Images
Electric bills in New Jersey could increase by as much as five percent next year, according to the regional power grid operator, PJM. The announcement follows the latest capacity auction, which determines how much power plants will produce and the wholesale cost of acquiring and distributing electricity. Last month, Garden State electricity customers experienced a steep 20-percent hike in their bills.
Governor Phil Murphy and other Democrats blame PJM for not keeping up with supply demands, while Republicans argue that the focus on clean energy is the issue. New Jersey's energy groups have urged Governor Murphy to push for bold reforms within PJM. They argue that delays in approving new, more reliable energy sources have contributed to rising costs.
The Sierra Club and other organizations have criticized PJM for its lack of transparency and for fast-tracking natural gas projects over renewable energy. They argue that reforming PJM's processes could unlock cleaner, cheaper power and protect families from future rate shocks.
The recent capacity auction comes amid growing demand from AI data centers and concerns over energy affordability. PJM's interconnection queue, which includes many renewable energy projects, has faced significant delays. If PJM continues on its current path, New Jersey ratepayers could face annual energy bills exceeding $2,000. However, by adopting reforms and accelerating clean energy deployment, consumers could save more than $400 per year.
Governor Murphy has been praised for his efforts to hold PJM accountable and is encouraged to continue pushing for reforms that would lead to a more affordable and reliable energy future for New Jersey.