Outrage over plan to delay huge NJ electric rate spike until after elections

🔴 New Jersey asks utilities to delay 20% rate hikes

🔴 Gov. Murphy blames grid operator PJM for "cost crisis"

🔴 Republicans say Trenton Democrats are deflecting

As June 1 electric rate hikes rapidly get closer, New Jersey is demanding that utility companies make plans to soften the blow to ratepayers' wallets.

The state Board of Public Utilities has ordered the four major electric distribution companies — JCP&L, PSE&G, Atlantic City Electric, and Rockland Electric Company — to file petitions to help lower the cost of electricity this summer.

The petitions have to be filed by May 5, 2025.

And the plans could include delaying rate hikes until after the summer. Usage rates are high during hot weather, and holding off on the increases until the cooler seasons would limit the impact, officials said.

PJM grid company blamed for cost crisis

The Murphy administration has pointed the finger at PJM Interconnection, the grid operator for 13 states, including New Jersey.

"Despite big-picture concerns with the electricity market, my Administration is focused on immediate solutions to the PJM cost crisis and doing everything in our power to offer relief to families and businesses," Murphy said.

U.S. Rep. Josh Gottheimer, D-N.J. 2nd District, has joined Murphy in demanding a Federal Energy Regulatory Commission (FERC) investigation into PJM.

Gottheimer said the electricity supply isn't keeping up with demand, which he said will increase by 50% over the next six years because of artificial intelligence and new data centers.

But the grid operator is stalling, Gottheimer said. He said that PJM got money for projects from the 2021 Infrastructure Investment and Jobs Act, but those projects haven't been done.

Delays are a Democrat issue

However, asking utility companies to delay their rate hikes is just a smokescreen, state Sens. Anthony Bucco, R-Morris, and Michael Testa, R-Cumberland, said.

“Instead of moving quickly to fast track reliable, affordable power to increase supplies, the BPU and Trenton Democrats are instead scrambling to deflect this emergency with bureaucratic gimmicks that delay price hikes," Sen. Bucco said.

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Bucco has called for the state to rely more on natural gas to generate electricity, while Testa has introduced legislation (S4285) to abolish the BPU.

While the rate hikes are currently set to begin June 1, a delay to the increases would likely have them take effect after the primary elections on June 10.

"Telling utility companies to kick the can down the road on rate hikes until after the election doesn’t change the fact that Trenton Democrats and the BPU pushed an unreliable, unaffordable Energy Disaster Plan that broke our system," Testa said.

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