The battle continues in Trenton as Republicans and Democrats point fingers at who is to blame for rising electricity prices. Republicans smell blood in the water and hope a continued focus on what they claim is Democratic culpability for price hikes will help them gain seats in the Assembly in November. Democrats place blame on utilities and grid operator PJM Interconnection while working to be seen as the party taking action to reduce the impact of rising prices.
On Monday, May 5, Democrats on the Assembly Telecommunications and Utilities Committee advanced eight bills they say will benefit ratepayers. The bills require Board of Public Utilities regulators to study the impact of data centers on energy supplies, study as well the possible use of small nuclear reactors, require a full rate analysis before allowing increases and initiate an investigation of PJM for possible market manipulation. The bills even set minimum standards for experience and training for all BPU members.
Republicans argue that none of the bills will ease the burden of rising rates on the public. They place the blame squarely on the state’s climate policy initiatives, which focused on the development of renewable sources of energy like offshore wind while allowing the premature decommissioning of reliable energy generation from natural gas and nuclear technologies.
GOP leaders announced Monday that they have appointed a task force to develop recommendations to combat the price increases. Assembly members Alex Sauickie (R-12), Paul Kanitra (R-10), Christian Barranco (R-25), Michael Torrissi (R-8) and Dawn Fantasia (R-24) will consider ways to blunt the impact of rising prices in the short and long term.
The fact that the eight Democratic bills and the Republican task force are originating in the Assembly is no mystery. With all 80 seats in the Assembly on the ballot in November and no member of the Senate going before the voters this year, it is politically expedient to have Assembly members front and center on the issue.
With both parties wishing to be seen as the group taking action ahead of price increases due June 1, voters will be left to decide whose arguments to accept and whom to blame for higher bills. Neither the legislation advanced on Monday nor the task force seeking recommendations is likely to have an impact before the rates kick in.
Ratepayer advocates from three states including New Jersey have asked the Federal Energy Regulatory Commission to order a new auction for electricity supply for the 2025-2026 delivery year. The new auction would set aside the enormous increases that resulted from the July 2024 PJM capacity auction.
The result, according to New Jersey Rate Counsel Brian Lipman, a party to the request made to FERC, would be lower prices and potential refunds for ratepayers. There has been no decision yet on the filing.
FERC has agreed to allow a PJM plan for a price cap and floor in auctions for the next two delivery years, starting with 2026-2027, but that will have no impact on this year’s rates. The price cap proposal was a PJM response to a complaint by several state governors, led by Pennsylvania’s Josh Shapiro and including New Jersey’s Phil Murphy.
Most recently the BPU has required that New Jersey’s four electricity delivery utilities submit proposals that would defer rate hikes due June 1 until after the summer months, when electricity use is at its highest. How this would work and what the delay in applying the rates would mean for subsequent bills is unclear. The next regular meeting of the BPU is May 21.
Barring action by FERC or the BPU in the next three weeks, new rates for supply of electricity will go into effect on June 1. The increase is expected to raise the supply portion of New Jersey customers’ electricity bills between 17% and 20%.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
