TRENTON, NJ – Governor Phil Murphy has signed into law two bills directing state regulators to investigate New Jersey’s skyrocketing electricity costs, a crisis that has deepened under his administration as the state shifted from exporting power to importing it, and as his clean energy agenda has struggled to deliver results.
The laws — AJR216/SJR154 and A5463/S4363 — order the state Board of Public Utilities (BPU) to review PJM Interconnection, the regional grid operator responsible for electricity supply in New Jersey and 12 other states. Regulators are tasked with examining whether PJM’s pricing model is functioning as intended, ensuring adequate power generation at the lowest possible cost. The BPU must also continue working with other PJM states to push for reforms and report back to the Governor and Legislature within a year.
Murphy said the measures would bring “accountability and transparency” to PJM’s decision-making, blaming the grid operator for both rising bills and a lack of new energy projects. “We are committed to creating a system that is fairer and more transparent for customers and the states that represent them – a necessary change from the opaque practices that have, for too long, defined PJM,” Murphy said.
The Governor’s remarks come as residents face steep electricity bills following years of major shifts in the state’s energy strategy. Prior to Murphy taking office, New Jersey was a net exporter of energy. Since then, fossil fuel plants have been closed while large-scale solar and offshore wind projects, once central to Murphy’s clean energy push, have lagged behind schedule. With new generation not yet online, New Jersey has been forced to import energy, driving up costs and raising questions about reliability.
The June 2024 PJM capacity market auction, which helps determine future power supplies, drew criticism from New Jersey and other states. Since then, Murphy’s administration has sent multiple letters to PJM’s board and filed complaints with the Federal Energy Regulatory Commission (FERC), arguing that PJM’s market rules prioritize profit over affordability and have failed to stimulate the new generation needed to meet demand.
Murphy’s clean energy plan — which envisions New Jersey powered largely by solar, offshore wind, and other renewable sources — has faced mounting criticism as utility bills climb. Opponents argue that his push to quickly phase out fossil fuels without replacement generation has left the state in a vulnerable position. Murphy, however, has countered that PJM’s opaque practices and lack of accountability are at the heart of the problem, not the state’s energy policy direction.
With Friday’s signing, the BPU now has authority to dig deeper into PJM’s pricing system, known as the Reliability Pricing Model, and determine if it is delivering fair costs and adequate energy for New Jersey ratepayers. The findings will shape whether New Jersey continues pressing PJM for sweeping reforms or pursues additional strategies to boost in-state energy generation.
—
Key Points
- Phil Murphy signed AJR216/SJR154 and A5463/S4363, requiring an investigation into PJM’s role in high energy costs
- New Jersey, once an energy exporter, now imports power after fossil fuel closures and delays in clean energy projects
- The Board of Public Utilities must examine PJM’s pricing system and report findings within a year as residents face soaring bills
Phil Murphy is now turning to new laws to explain why New Jersey’s energy costs have exploded under his administration.