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Review & Opinion

Electricity Rates Rise and Rise: An Unchecked Path to Disaster

The push toward electrification is sweeping across New Jersey with promises of a greener future, lower emissions, and economic prosperity. But beneath this grand vision lies a troubling reality: The unchecked rise in electricity rates that threatens to burden citizens with skyrocketing costs, all while the state’s leaders fail to present a coherent and balanced strategy.

Electrification, the transition from fossil fuels to electricity in transportation, home heating, cooling, and manufacturing, is touted as the panacea for climate change. The state government assures the public of a future characterized by high-paying jobs, national leadership, and improved public health. Yet, as these plans unfold, the critical details that determine the feasibility and impact of this transition remain obscure.

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How will the state’s plan ensure that the thousands upon thousands of

cars visiting Cape May County weekly can access the necessary charging stations?

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New Jersey’s electrification strategy relies heavily on renewable energy sources, aiming to transition the transportation sector from petroleum to electricity, and push for electricity as the preferred power source for homes. However, these goals overlook the fundamental challenges of such a drastic shift. According to Wells Fargo, U.S. electricity demand could increase by as much as 20% by 2030 – a staggering jump compared to the less than 2% increase over the last decade. This surge in demand comes at a time when utilities are decommissioning coal plants, reducing reliance on fossil fuels, and incorporating intermittent renewable energy sources like solar and wind. The existing infrastructure for electricity generation and transmission was never designed to handle this level of complexity, leading to a chaotic and uncertain future for New Jersey’s energy landscape.

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Facts be damned, Governor Murphy is saying, come hell or high water, we are doing this.

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The everyday citizen becomes the unwitting financier of this transition. Already, New Jersey is among the most expensive states in the nation for electricity. In Cape May County, served by Atlantic City Electric, residents pay the highest rates in the state. From June 2023 to June 2024, ACE’s rates for residential customers increased by 13%, with another 18% increase announced in August 2024. These rate hikes are not anomalies; they are the new normal, underscoring the lack of a balanced and comprehensive strategy.

Even if one accepts the necessity of transitioning to a greener energy future, the way New Jersey is going about it is almost guaranteed to undermine public support and place significant economic burdens on its citizens. The state’s leaders are pushing forward with ambitious end goals, set by politicians with limited terms in office, without considering the practicalities of implementation. The current efforts at electrification are increasing demand at a time when environmental concerns are stifling investment in traditional power generation, and when renewable energy is still more promise than reality. Without a balanced strategy, the state’s energy future is on a collision course with disaster.

Citizens in a democracy should not accept being left in the dark by their government. It is not enough to say that “they” are not telling us what “they” are doing; we must hold them accountable for their failure to respect the people as the sovereigns in our country. The details of this electrification strategy are not being shared; quite frankly, they may not exist. The New Jersey Board of Public Utilities once claimed that the average home would see only a minimal increase in costs for green energy. Yet, we are now witnessing massive rate hikes that suggest a government ill-equipped to think things through from beginning to end.

Cape May County’s residents, like all New Jerseyans, deserve clear answers. How will the transition to all-electric vehicles work? One obvious question we again ask: How will the state’s plan ensure that the thousands upon thousands of cars visiting the county weekly, particularly during the summer, can access the necessary charging stations? And how will the grid deliver the enormous increase in demand for electricity that this transition will require?

If there exists a long-range, economically workable plan, why is it not being clearly laid out to the public? One is left to conclude no such plan exists. The apparent lack of planning and transparency is unacceptable. It is the height of hubris. The economies of Western nations have thrived on sound planning by trained professionals in their respective fields. More and more today, our government is stepping into that role, despite a historically disastrous track record. New Jersey’s approach to electrification seems to follow this troubling trend.

New Jersey’s citizens must demand a more thoughtful and transparent approach to electrification – one that considers the long-term implications for both the environment and the economy. Without it, the state’s electrification strategy is doomed to be nothing more than a costly experiment with the public footing the bill.

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From the Bible: God resists the proud, but giveth grace to the humble. From James 4

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