With an impending utility rate increase which took effect on June 1, the Murphy Administration took action on Thursday to mitigate consumers who are being battered with rate increases and now New Jerseyeans will be seeing a little relief on their bills.
Gov. Phil Murphy, Senate President Nick Scutari, and Assembly Speaker Craig Coughlin on Thursday announced over $430 million in direct relief to lower the cost of energy bills.
In fact, all 3.9 million ratepayers in the Garden State will receive at least $100 in direct relief, while eligible low-to-moderate income New Jerseyans will see at least $150 more deducted from their energy bills.
“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,” Murphy said. “But let me be clear: this is a short-term solution for the people of our state being battered by rising energy costs. 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.”
“The upcoming spike in utility bills imposed on New Jersey residents is unaffordable and unfair,” said Senate President Nick Scutari. “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. We can’t allow New Jerseyans to be left to themselves to shoulder the burden of PJM’s mismanagement.”
“Today’s announcement demonstrates what good governance is all about – delivering real results to those who call New Jersey home, and I’m proud of the work the NJBPU has done to make this historic rate relief announcement a reality,” NJBPU President Christine Guhl-Sadovy said.
As demand for electricity is on the rise, regional grid operator PJM Interconnection has failed to plan for increased energy capacity and has failed to bring new, renewable energy projects online.
In recent months, New Jersey has led the way in advocating for a solution to the cost crisis faced by multiple states that are members of the PJM region. In April, Murphy called on the Federal Energy Regulatory Commission (FERC) to investigate whether market manipulation led to higher capacity auction prices.
The governor also urged PJM to finally provide long-overdue approvals for new, clean sources of energy, such as solar power, that would help expand New Jersey’s supply of energy. This year New Jersey exceeded 5 gigawatts of installed solar capacity for the first time, enough energy to power 750,000 homes. PJM, however, has delayed the process for allowing new sources of clean, reliable energy to be added to the State’s grid.
Richard Henning, president & CEO of the New Jersey Utilities Association said the NJUA is a strong supporter of initiatives that drive down the cost of electricity to customers and is looking forward to working with the governor’s office to expand energy affordability.
“New Jersey continues to benefit from the strong working relationship between our state government and the utilities, as we address the rate hikes driven by higher supply costs stemming from the increasingly high demand on the grid,” Henning said.
“NJUA members are eager to share information about energy efficiency, focusing on ways in which customers can reduce usage and save money. The NJUA, and its members, regularly engage elected leaders and communities throughout New Jersey, holding workshops and other events that continually promote energy-saving practices,” Henning added.
The NJUA also urges those struggling to pay their bills to reach out to their local utility to learn more about payment arrangements and other means to ensure customers are not shut off during the summer.
