As electricity prices plague voters in advance of the November election, Gov. Phil Murphy has doubled down on his effort to place the blame for the high prices on grid operator PJM Interconnection.
Murphy this month signed two new pieces of legislation, saying in a statement that the two bills “complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans’ skyrocketing electricity bills.”
Under one bill, the state Board of Public Utilities is required to conduct an investigation into PJM’s reliability pricing model to ensure that it is advancing the goal of ‘adequate resources at the lowest possible costs.”
Under the other, the state’s public utilities are required to disclose how they voted on matters at PJM that impact New Jersey ratepayers. This bill is described by Murphy as an aid to transparency and accountability in PJM decision-making.
Murphy has described PJM practices as “opaque,” arguing that the new legislation will bring light to what is happening at the multistate operator.
PJM is publicly labeling the New Jersey legislation as another attempt by the state to move the blame for the price hikes away from the state’s clean energy policies.
“We understand the political motive to shift blame for high energy bills, but the fact remains that PJM operates as a not-for-profit that plans the power grid and administers federally regulated electricity markets,” the company said in a statement.
The statement openly accused New Jersey of obfuscation with respect to the real problems, saying, “Pointing fingers will not solve the supply-and-demand realities driving higher prices for consumers in New Jersey, including challenges that stem from failed policies.”
State Republicans, seeing their Democratic opposition vulnerable on the issue of electricity rates, are doing all they can to keep the blame focused on Murphy’s policies.
“First off, nobody even knows what PJM is, nor do they need to because the cause of skyrocketing energy bills lies with the governor and the Democrat-controlled Legislature,” said Republican Assemblyman Alex Sauickie (R-Monmouth), a member of the Assembly’s Telecommunications and Utilities Committee.
In an Aug. 15 statement, the Republican Assembly organization directly blamed Murphy’s policies when it said, “Since Gov. Phil Murphy took office, New Jersey’s dependable energy supply has decreased by 20% following the closure of Oyster Creek nuclear plant and coal-fire and natural gas facilities.”
“New Jersey consumes more electricity than it produces, and in 2023 it imported nearly one-fifth of its power from suppliers in other states.”
But the Republican statement does not provide full context, since the governor who was most instrumental in the closing of Oyster Creek was Republican Chris Christie. Also, the closure of two PSE&G coal-burning plants occurred under Christie. The B.L. England plant in Upper Township along with the Logan and Chambers generation plants closed during Murphy’s terms.
As in many other areas of the energy debate, the consequences of the new two bills will be added to the array of issues facing the next governor. The BPU was given up to a year to conduct its investigation.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
