The basics:

• Gov. Sherrill signs 2 executive orders addressing utility costs on day one 
• Orders include state of emergency, actions to curb electric rate hikes
• NJBPU empowered to pause actions that could further increase bills
• State to accelerate new power generation, including solar, storage & nuclear review

New Jersey’s 57th governor, Mikie Sherrill, wasted no time in taking action on an issue that took center stage during the gubernatorial race – energy.

During her inaugural address Jan. 20 at the New Jersey Performing Arts Center in Newark, Sherrill signed her first two executive orders, which keeps her promise to declare a state of emergency on utility costs on day one.

“I promised the people of New Jersey bold action to lower utility costs and, today, I’m delivering,” said Sherrill. “Trenton will not longer accept the status quo and kick the can down the road while New Jersey families pay higher bills – not on my watch.”

The executive orders include:

• No. 1:
  • Uses state authority and existing funds to offset electricity bill increases coming in June
  • Empowers the New Jersey Board of Public Utilities to pause or modify utility actions that could further increase bills
  • Directs NJBPU to review utility business models to ensure alignment with delivering cost reductions to ratepayers
• No. 2:
  • Declares a state of emergency (under the Disaster Control Act), creating and expanding multiple, expedited state programs to develop “massive amounts of new power generation in New Jersey,” including initiating and accelerating programs to bring on thousands of megawatts of new solar and battery storage generation and establishing a Nuclear Power Task Force
  • Directs state agencies to identify permit reforms to more rapidly deploy new energy projects and directs NJBPU to take action on AI “ghost loads” by requiring electric utilities to report on energy requests from data centers

“These executive orders will deliver relief to consumer and stop rate hikes, so New Jerseyans aren’t facing ever increasing electric bills,” said Sherrill, who blamed rate hikes on the regional grid operator, PJM Interconnection, and said she would hold utilities accountable for keeping rates from continuing to climb at an unsustainable rate. “This will also create conditions to massively expand New Jersey’s power generation, because more power in-state will help lower costs.”

Hot topic

As NJBIZ has previously reported, energy-related issues dominated the campaign trail this summer and fall, particularly the price of utility bills as ratepayers faced a nearly 20% increase this past June 1, following the results of the auction process. Another, albeit not as steep, hike is slated to hit ratepayers this June 1.

On the campaign trail, Sherrill made this issue a central tenet of her message centered on affordability with a pledge to declare a state of emergency and to freeze utility rate hikes.

Executive order No. 1 calls for the use of Residential Universal Bill Credits, as well as a multiple-agency review about the potential use for Regional Greenhouse Gas Initiative (RGGI) proceeds for ratepayer relief and revisions to the Clean Energy Program budget to prioritize funding for direct ratepayer relief to offset increases in the cost of electricity supply borne by residential ratepayers.

“I heard the people of New Jersey loud and clear – these rate hikes are unacceptable. And as your governor, I will not stop fighting to lower costs and make New Jersey a more affordable place to live, work, and raise a family,” said Sherrill.

Please stay tuned for further coverage and details about these two first actions of the Sherrill administration as well as reaction.