Listen to this article

The basics:

• NJBPU approves $100 energy bill credit for 3.9M residential ratepayers
• Relief part of $430M package to address rising electricity costs
• Murphy signs PJM transparency, accountability reform laws
• Debate intensifies over energy prices, capacity auctions and policy

The Murphy administration took a series of actions last week pertaining to the energy crisis gripping the Garden State.

At its Aug. 13 meeting, the New Jersey Board of Public Utilities approved the Residential Universal Bill Credit. The move provides $100 in credits toward the energy bills of 3.9 million residential ratepayers, who use one of the four public utility companies:

• PSE&G
• Atlantic City Electric
• JCP&L
• Rockland Electric

Announced in June, as NJBIZ reported, the initiative is part of a $430 million tranche of funding to address the spike in electric bills that began June 1. The Residential Energy Assistance Program (REAP) marked the first portion of the relief package. That will provide an additional $175 in direct relief – via $25 credits – on top of the $100 credit approved Aug. 13 to income-qualifying ratepayers between August and February 2026.

Beginning in September and October, these $100 credits will apply to electric bills. Residents will receive a $50 credit for each month. In June, the NJBPU also approved a plan to defer $60 total ($30 in July, $30 in August) from bills during the high usage summer months. Ratepayers will then pay back that interest-free deferral spread out at $10 a month period, from September to February.

Who’s to blame?

NJBIZ has reported extensively on this topic. The matter has become the hottest of hot-button issues here as the summer has heated up and ratepayers have faced mounting bills.

The Murphy administration and Democrat lawmakers have pointed the finger at PJM Interconnection. Meanwhile, the grid operator has defended itself. PJM in turn points to the supply/demand/cost realities. (See the company’s NJBIZ op-ed here). And Republicans have blamed Democrat lawmakers and the Murphy administration.

“Providing economic relief to our residents is critical in managing rising electric costs from the PJM cost crisis,” said Gov. Phil Murphy. “My administration is furthering our commitment to affordability for our residential ratepayers by providing direct assistance to lower the monthly cost of energy bills. No New Jerseyan should fear losing electricity, and we will continue to work with BPU to ensure necessary action is taken to combat untenable energy bills for families and businesses.”

NJBPU President Christine Guhl-Sadovy said this bill credit fulfills the governor’s commitment to provide immediate relief to residential customers to manage capacity cost increases this summer.

“This is one of many ways that NJBPU is putting affordability first,” said Guhl-Sadovy. “Over $430 million in direct assistance to nearly every residential ratepayer is a key tool to help ratepayers in the short-term, while we work to bring more electricity online which will lower costs for all ratepayers.”

‘Failed leadership and policies’

Republicans described the action as an election-year ratepayer relief scheme.

“Electric bills have tripled because of state Democrats’ failed leadership and policies, and now they want to buy votes with $160 of temporary credits,” said Assemblyman Alex Sauickie, R-12th District, in an Aug. 14 statement, referring to the $60 deferral and $100 credit.

“What’s worse is while ratepayers would normally pay less in the winter for their electricity, bills will be shockingly high because customers will be forced to pay it all back.

“This isn’t a rebate, it’s a bribe,” Sauickie said.

Addressing accountability

Meanwhile, Murphy signed two bills into law Aug. 15. Lawmakers say the measures aim to increase public accountability and transparency in decision-making by PJM Interconnection and its members.

• Assembly Joint Resolution 216/Senate Joint Resolution 154
  • Aims to ensure that PJM is serving ratepayers by utilizing the Reliability Pricing Model. That framework serves the intended purpose of obtaining adequate resources at the lowest possible cost at its annual capacity market auction. Also directs NJBPU to continue advocating, along with other states, for PJM reforms. Those goals include increasing the electricity supply, protecting ratepayers as well as prioritizing clean energy generation
• Assembly Bill 5463/Senate Bill 4363
  • Calls for transparency and accountability with votes by PJM members on matters that impact ratepayers. Under the law, the utilities and their affiliates must report their recorded votes and explain how each vote furthers the state’s goals of prioritizing the affordability, reliability and sustainability of electricity production, consumption and conservation

“These bills complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans’ skyrocketing electricity bills and a lack of new energy generation,” said Murphy. “We are committed to creating a system that is fairer and more transparent for customers and the states that represent them – a necessary change from the opaque practices that have, for too long, defined PJM.”

Calling on PJM

Other recent developments on the issue have included:

• Bipartisan governors of the PJM region organizing an energy reform conference next month in Philadelphia;
• The state leaders’ writing a letter to PJM expressing concerns;
• A recent auction that saw another increase in capacity costs, but not as dramatic as in 2024. The latter led to the 20% spike in bills we are seeing this summer. The latest auction results expect to yield a 1.5%–5% increase on ratepayers’ bills next summer.

“While we continue to advocate at the regional level to address PJM’s flawed market rules and work to develop key programs and spur investment in new energy resources in-state, PJM must come to the table and demonstrate that the ratepayers of New Jersey, and throughout the region, are a priority,” said Guhl-Sadovy. “The lack of transparency in their regular business, coupled with more than a thousand clean energy projects stuck in their red tape cannot continue.

PJM must come to the table and demonstrate that the ratepayers of New Jersey, and throughout the region, are a priority.
– Christine Guhl-Sadovy, NJBPU president

“The recent, dramatic capacity auction price increases demonstrate that the status quo must change. It’s hurting ratepayers and it’s constraining energy jobs. Transparency is the first step toward accountability.”

Auction ‘clearly broken’

“The energy auction that is the principle cause for the spike in utility bills is clearly broken and in desperate need of reform,” said Sen. John Burzichelli, D-3rd District, a prime sponsor of SJR154. “It failed to make consumer affordability a priority, put a chokehold on the energy supply line, and is susceptible to manipulation.

“This investigation is needed to identify the specific causes and determine the reforms needed to reduce costs and increase the supply of new energy.

“It will bring more accountability to the process and better protect ratepayers from unjustified utility bills.”

“This bill will ensure PJM voters take responsibility for their decisions, increasing the public’s confidence in the decisions being made,” said Assemblyman Robert Karabinchak, D-18th District.

A prime bill sponsor of A5463, Karabinchak also co-sponsored the joint resolution. “New Jersey and 12 other states who depend on PJM should have transparency from the over 500 people who are making these decisions. We should be able to know who made what vote and why without having to jump through hoops,” he said.

PJM responds

In a statement to NJBIZ, PJM responded to the new laws and criticism from Democrat lawmakers.

“We understand the political motive to shift blame for high electricity bills, but the fact remains: PJM operates as a not-for-profit that plans the power grid and administers federally regulated wholesale electricity markets,” PJM told NJBIZ.

Pointing fingers will not solve the supply-and-demand realities driving higher prices for consumers in New Jersey.
– PJM Interconnection

The company added, “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. Our focus remains on working toward real solutions, because New Jerseyans deserve nothing less.”