Michael S. Giaimo//September 22, 2025//
PHOTO: DEPOSIT PHOTOS
PHOTO: DEPOSIT PHOTOS
Michael S. Giaimo//September 22, 2025//
Lawmakers are looking for answers in the face of recent increases to electric utility bills. With already high living costs, the public response to these increases has come in the form of a swift and justified backlash. And not surprisingly, this complex and multifaceted issue – which requires a balancing of cost, reliability and the environment – is center stage in the gubernatorial election.
The outcome of the most recent annual regional capacity market auction sent a clear message: demand is rising, supply is lagging, and the consequences are significant and impact everyone. And the time is now to reexamine the state’s energy policies to make certain they are consistent and keeping pace with the needs of the state and its residents.
Key to any honest energy discussion is the observation that demand for energy is going up. This requires more power from more sources and the avoidance of prematurely retiring energy sources – especially natural gas – without viable, scalable replacements.
It goes without debate that a robust, well-functioning and reliable power system is essential to the health, safety, and prosperity at both the state and federal levels. Accordingly, the state and region need the right combination of resources – power plants and energy efficiency as well as accompanying infrastructure – to ensure reliability, particularly when demand is most significant and pronounced during heat waves and cold snaps.
We must prioritize investment in transmission and delivery infrastructure. The best mix of energy sources is only as strong as the grid that carries it. That means removing unnecessary regulatory roadblocks, upgrading aging systems and building with the future in mind. Without a robust and flexible grid, even the most ambitious clean energy goals will fall short.
Right now, about 72% of New Jersey households rely on natural gas as their primary heating fuel and 17% use electricity for space heating. Additionally, according to the U.S. Energy Information Administration, almost half of the power consumed is derived from natural gas.
This isn’t about turning our backs on alternative energy sources, rather, it’s about complementing them. Natural gas isn’t the enemy of renewable power, it’s an ally. It provides crucial backup to intermittent resources. Natural gas plants can ramp up quickly to meet sudden spikes in demand, something renewables, for all their promise, cannot yet do consistently or reliably on their own. That flexibility is essential for managing cold snaps, heatwaves and periods of rapid economic growth.
This isn’t about turning our backs on alternative energy sources, rather, it’s about complementing them.
Having an approach that takes advantage of all energy sources doesn’t just help stabilize electric prices and strengthen reliability, it also supports thousands of good-paying union jobs, keeps our manufacturing sector competitive, and helps ensure that major employers like hospitals and tech firms don’t start looking elsewhere for more dependable energy solutions.
The next governor should promote a diverse and reliable energy mix and have policies that support carbon reduction through innovation and infrastructure, not through mandates that ignore economic and logistical realities. Leadership doesn’t mean pretending we can leap to a zero-carbon future overnight, rather it means creating a clear, achievable roadmap that protects our environment while also protecting ratepayers and preserving our economic competitiveness.
Energy policy doesn’t have to be a zero-sum game. We can support all types of energy sources including the vital role conventional fuels play in our current system. To do otherwise we risk failing on all three fronts: the environment, grid reliability, and price.
Michael S. Giaimo is the Northeast region director for the American Petroleum Institute.