With supercharged electric costs bearing down on New Jersey households, Gov. Phil Murphy Thursday announced a plan in which the state government would provide $430 million with “direct economic relief” to New Jersey energy customers. New Jersey ratepayers are facing electric bills that are as much as 20% higher than they were one year ago.
The administration’s website said all 3.9 million ratepayers in New Jersey will receive at least $100 in direct relief, while eligible low-to-moderate income (LMI) New Jerseyans will see at least $150 more deducted from their energy bills.
“This initiative reflects our administration’s broader and enduring commitment to making New Jersey more affordable for more families,” Murphy said. “From housing to health care to higher education and, of course, today’s topic, to utilities.”
The prospect of higher electricity costs has angered many in the state who blame the governor’s energy plan for driving up costs. The governor puts much of the responsibility for higher rate costs on PJM Interconnection, the regional energy grid operator.
The program for low and moderate income households will provide $150 in relief spread across bills from July through December, while everyone — including those receiving the $150 — will get $100 in “one or two payments when the bills are hurting the most,” Murphy said. More specifics about the initiative will be revealed in the next few weeks, according to Murphy.
Approval from the state Board of Public Utilities is pending.
The funds will come from the Clean Energy Fund, the BPU’s portion of the Regional Greenhouse Gas Initiative, and the Solar Alternative Compliance Payment account.
Murphy said this was happening today because the state, like many others, is being “battered” by higher energy costs.
The governor blamed PJM Interconnection, the regional energy grid operator, for the rate hikes, noting it has “failed to plan for increased energy capacity or for bringing new clean energy sources online.”
Many lawmakers say the renewable energy programs, like those supported by Murphy, could lower costs for ratepayers if they were allowed to connect to the grid.
Murphy championed clean energy policy with an executive order in 2020 that would set New Jersey on the path to 100% clean energy by 2050. A second executive order accelerated the timetable for the state to have 100% clean energy by 2035.
The New Business and Industry Association has been an opponent of the governor’s plan and weighed in on his announcement.
“While we appreciate any efforts to reduce energy costs for New Jersey residents and businesses, and some of the criticisms of PJM we heard may be fair, what we did not hear today from our leadership was the undeniable role New Jersey’s energy policy decisions have played in the energy price increases we face today,” the association said in a statement.
“…the administration pushed policies that drove up the use of electricity and adopted policies that shut down generation and discouraged the development of clean natural gas facilities and other alternatives such as renewable natural gas.
“… we have continuously warned that creating policies that set artificial deadlines for actions and discouraging new generation from sources that include natural gas and nuclear will result in much higher energy prices for our residents and businesses. And here we are.”
