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Murphy’s Blame Game on Electricity Prices Falls Flat

Murphy’s Blame Game on Electricity Prices Falls Flat

In July, Gov. Phil Murphy joined eight other governors in a letter to the PJM Interconnection board of managers. The letter harshly criticized the 13-state grid operator, claiming PJM faces “an unprecedented crisis of confidence from market participants, consumers and the states” it serves.

The motivation was clear: skyrocketing electric bills. But rather than own their role in the crisis, the governors pointed fingers at PJM. The letter ignored the impact of state energy policies, including their own, on the current mess.

In New Jersey, those policies include the premature shutdown of fossil fuel generators and a nuclear power plant, paired with an aggressive, top-down push for offshore wind. That initiative has stumbled through repeated delays, making it clear wind farms will not be operational in time to replace the generating capacity lost.

Today, New Jersey is a net importer of electricity. The state’s inability to produce what it consumes has made it increasingly vulnerable to price spikes driven by market forces.

Meanwhile, state mandates have escalated demand. New Jersey’s adoption of California-style electric vehicle targets and new building electrification requirements are straining an already constrained supply. These are not PJM’s decisions – they are Trenton’s.

The closure of Beesley’s Point in Cape May County is just one local example. The PJM board didn’t call for that shutdown. Nor did it place a risky bet on offshore wind that now appears years behind schedule.

Despite all this, Murphy and other governors now want to inject state politics into PJM’s leadership. Their letter demands that two open seats on the board “must remain dedicated to candidates who are proposed by the states.”

Just what the grid doesn’t need, appointments based on political allegiance rather than technical expertise.

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Let’s put the best people we can on the task, not the most politically connected.

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New Jersey’s own Board of Public Utilities offers a cautionary example. Of five board seats, only three are filled. One has remained vacant since 2023. The BPU’s president, a former Murphy staffer, has acted more like a cheerleader for the administration’s energy agenda than as a regulator balancing the needs of consumers and utilities.

Yes, PJM has made missteps. It has implemented some reforms since 2022 that have helped, but further improvements are needed. Those improvements should not come through partisan appointments.

We cannot speak for every PJM state, whether they signed the letter or not. But we can speak from experience in New Jersey: There’s more than enough to fix right here at home.

All PJM states have a stake in ensuring the grid operator is staffed by competent, experienced and independent professionals. With generator supply tight and reliability challenges looming, the stakes are too high for political games.

Quotes From the Bible

“Your princes are rebellious, and companions of thieves: everyone loves gifts, and follows after rewards.” — Isaiah 1:23
A warning about the potential for corrupted governance and self-serving appointments.

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