Gov. Mikie Sherrill on Tuesday signed a sweeping package of energy legislation aimed at boosting utility accountability and protecting consumers, while simultaneously rolling out immediate bill credits for millions of New Jersey households.
According to an independent analysis by Synapse Energy Economics, the legislative package—combined with actions taken by the Sherrill Administration over the last six months—is projected to save Garden State ratepayers more than $1 billion annually.
In addition to long-term structural reforms, Sherrill announced an immediate $25 credit for all 3.6 million New Jersey ratepayers through the Residential Universal Bill Credit (RUBC) program, alongside an extra $150 credit for lower- to moderate-income families via the Residential Energy Assistance Payment (REAP) program ahead of peak summer cooling months.
The three bills signed into law today target rising electricity costs by eliminating structural inefficiencies and imposing strict guardrails on heavy energy users:
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Repeal ROE Adder (S1673 / A2757): Mandates that New Jersey utilities maintain membership in the regional grid operator, PJM. Under federal rules, voluntary members receive a 50-basis-point “return on equity” incentive bonus that is traditionally passed down to consumers. By making membership mandatory, utilities lose eligibility for this bonus, driving down wholesale transmission rates.
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Advanced Grid Technologies Act (S4411 / A5188): Mandates that utilities secure a Certificate of Public Convenience and Necessity (CPCN) before constructing supplemental transmission projects (like wires and substations). Between 2008 and 2025, unmonitored supplemental spending comprised 79% ($14.7 billion) of New Jersey ratepayer transmission expenses. The law introduces a “fast-track” review process for projects that utilize Advanced Transmission Technologies (ATT).
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Data Center Fair Share (S731 / A796): Establishes a brand-new ratepayer class and rate structure specifically for data centers to ensure they foot the bill for their massive energy consumption and localized grid strain. The law mandates that data centers scale back operations during periods of peak grid volatility before residential areas are impacted and introduces a first-of-its-kind retail program requiring data centers to fund distributed energy resource deployment.
“I made a commitment to rein in energy costs, and today we are delivering on that commitment,” Sherrill said. “For too long, New Jersey families have paid the price for poor oversight, outdated policies, and rising demand on our electric grid by unchecked actors. Today, we’re putting money back into people’s pockets while holding utility companies and large data centers accountable.”
The announcement anchors a highly aggressive energy affordability strategy launched during the administration’s first six months. Notable actions highlighted by the executive office include the immediate freezing of electric rate hikes via Executive Orders 1 and 2, lifting the state’s 50-year de facto moratorium on new nuclear power generation, and launching an aggressive expansion of the state’s Community Solar Energy Program to support up to 3,000 MW of new capacity.
State lawmakers and environmental advocacy groups heavily praised the legislative intervention.
“Data center growth will drive up the cost of electricity if we don’t create guardrails,” Assemblyman Dan Bailey (D-Gloucester, Salem, Cumberland), said. “We want to make sure data centers pay for the energy they use and the infrastructure they need, not our constituents.”
“Addressing the rising cost of electricity doesn’t just require us to bring new energy sources online—it also requires us to modernize our electric grid and better oversee utility providers,” Senator Andrew Zwicker (D-Middlesex/Mercer/Somerset/Hunterdon) said.
The Board of Public Utilities also confirmed it has renewed its Summer Termination Program, which legally protects vulnerable households from utility shutoffs during periods of extreme seasonal heat.
