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The basics:

• New Jersey will issue $430M in utility relief after June 1 rate hike
• 3.9M residents to get $100; low-income households get $150+
• Funds drawn from Clean Energy Fund, RGGI, solar programs
• NJBPU to vote on approval at June 18 meeting

As Garden State ratepayers face a 20% increase on utility bills post-June 1, state leaders announced a new effort to provide relief to New Jersey households.

During a June 5 press conference in Newark, Gov. Phil Murphy – flanked by legislative leaders, lawmakers and the New Jersey Board of Public Utilities president – announced over $430 million in direct relief.

“Today, we are coming together to provide critical economic relief to the people of New Jersey by directly lowering the cost of their monthly energy bills,” said Murphy. “But let me be clear: this is a short-term solution for the people of our state being battered rising energy costs.”

Key things to know:

• All 3.9 million residential ratepayers will receive at least $100 in direct relief
• Eligible low-to-moderate income New Jerseyans will receive another $150 or more deducted from energy bills
• Funding comes from three sources: Clean Energy Fund; the NJBPU share of the Regional Greenhouse Gas Initiative proceeds; the Solar Alternative Compliance Payment account
• The plan is slated for a vote and approval during NJBPU’s June 18 meeting

“This $430 million in direct relief to residential ratepayers in New Jersey is a short-term but critical step in addressing the rising energy costs,” said NJBPU President Christine Guhl-Sadovy. “And it’s so important that we’re doing this right now; not just because the new rates have gone into effect June 1, but because, as we can all feel in this room – it’s quite warm. And in the summer, bills get higher – and so making sure that we’re helping to offset some of those summer bills is so important to help support customers.

“Every residential utility customer in New Jersey will benefit because we are all in this together.”

Finger pointing

“As we continue our efforts in the Legislature to ease the burden of utility rate hikes for New Jerseyans, I am encouraged to see Gov. Murphy announce these steps to deliver meaningful and immediate relief,” said Assembly Speaker Craig Coughlin, D-19th District.

As NJBIZ has extensively reported, this topic has become one of, if not the biggest, hot-button issues in the state. The increase has drawn the attention of ratepayers, as well as Trenton lawmakers and candidates running to be the state’s next governor.

Democrats continue to point the finger at PJM Interconnection, the regional grid operator, for the situation. They blame PJM for failing to plan for increased energy capacity; for a backlog of projects that officials say would add more power to the grid; and for not bringing new, renewable energy projects online.

“The upcoming spike in utility bills imposed on New Jersey residents is unaffordable and unfair,” said Senate President Nick Scutari, D-22nd District, “PJM conducted a deeply flawed energy auction, and its continued incompetence is costing the state. These rate-relief credits will bring more immediate relief to consumers, putting money into their pockets to help offset utility costs.”

Murphy said, “Moving forward, we are going to work alongside BPU President Christine Guhl-Sadovy and our legislative partners to hold PJM accountable for the untenable and unconscionable costs they have forced on our state’s residents. Together, we are going to explore every possible avenue for lowering the cost of energy in the long term to make our state more affordable for more families.”

Making plans

PJM recently penned an exclusive op-ed for NJBIZ, offering it perspective on the situation. You can read “Setting the record straight on New Jersey’s energy dilemma” here.

The governor noted he is slated to meet next week in Trenton with PJM President and CEO Manu Asthana.

Meanwhile, Republicans and others have been critical of the Murphy administration’s energy policy, which was outlined in a recent NJBIZ piece.

As NJBIZ has reported, utilities are proposing different ideas to help mitigate the energy hikes – including a moratorium on shutoffs, potentially deferring the increase until after the peak summer months, and more.

A number of bills aimed at finding solutions to this issue have been advancing in Trenton.

Also, this week, on NJBIZ, Democratic gubernatorial candidate Mikie Sherrill penned an exclusive op-ed laying out her energy plan and priorities – should she become the state’s next governor.

Kicking the can

Reaction to the announcement poured in around the Garden State.

Senate Republican Leader Anthony Bucco, R-25th District, described it as “just another band aid.”

“Whether it’s the deferral of the energy cost or this credit on your bill, the fact remains it doesn’t fix the overarching problem, and it certainly doesn’t go far enough to help the families and small businesses already struggling to afford their utility bills,” said Bucco. “It simply delays the pain to avoid political fallout in an election year.

“Kicking the can down the road, giving everyone a credit, or blaming PJM might help with headlines – but it won’t help New Jerseyans in the long term.”

Assemblyman Michael Torrissi, R-8th District, a member of the Republican Assembly Energy Affordability Task Force, says the plan is smoke-and-mirrors.

“The only reason they have money to hand out is because they’ve been quietly stuffing utility bills with hidden charges for years,” said Torrissi. “Now, right before an election, they want credit for giving a little of it back.”

All of the above

New Jersey Business & Industry Association Deputy Chief Government Affairs Officer Ray Cantor said, “While we appreciate any efforts to reduce energy costs for New Jersey residents and businesses, and some of the criticisms of PJM we heard may be fair, what we did not hear today from our leadership was the undeniable role New Jersey’s energy policy decisions have played in the energy price increases we face today.

“New Jersey, under the governor’s Energy Master Plan, has had a target to achieve 100% clean energy by 2035 mostly through offshore wind, solar expansion and other energy efficiency programs.”

Cantor says the administration pushed policies that drove up the use of electricity while adopting policies that shut down generation and discouraged the development of clean natural gas facilities and other alternatives, such as renewable natural gas.

“We continue to urge the administration and our legislative leadership to be open to a true, all-of-the-above approach for energy generation, which includes natural gas and more nuclear power. We need to be realistic and not ideological when it comes to our energy policy in New Jersey.”

Diverting funds

New Jersey Policy Perspective Policy Analyst Alex Ambrose said, “We appreciate that the governor and lawmakers are taking seriously the strain high energy costs place on families, but how we deliver relief matters. Diverting funds from RGGI and the Clean Energy Fund risks weakening the very programs that lower long-term costs, strengthen our grid, and create local jobs.

“Lawmakers should prioritize targeted, sustainable solutions, like expanding the Whole House Pilot, scaling up Community Solar, and extending the Winter Termination Program to support those who need it most — without compromising our clean energy future.”

One thing is for certain, this story will continue to play out over these summer months here in the great Garden State.

Speaker Coughlin said that no one should have to choose between cooling their homes in the summer and paying for groceries or medication.

“And that’s why we will continue to [keep] our legislative focus on keeping energy costs affordable for the long-term,” said Coughlin. “We’ve passed bills that will strengthen oversight, improve accountability and protect New Jersey residents from unfair energy prices while also moving forward with an all-of-the-above approach toward increased energy production in the state.

“Generating our own energy will bring down costs for residents and businesses alike, as well as lead to the creation of good-paying jobs. I expect our state’s electric utilities to be partners in helping us meet these challenges.”