TRENTON, N.J. — Ignoring his own failed clean energy agenda that has led to an energy production shortage in New Jersey, Governor Phil Murphy is instead blaming PJM for out-of-control energy prices in the Garden State.
Between 2024 and 2026, New Jerseyeans will see their electric bills rise nearly 40%.
Murphy, unlike Mikie Sherrill, stopped short of blaming the Republican party for the energy rate increases.
Governor Murphy, Senate President Nicholas Scutari, and Assembly Speaker Craig Coughlin issued a sharp rebuke of the PJM Interconnection on Thursday, citing rising energy capacity prices and stalled in-state energy development as signs of deeper structural issues with the regional grid operator.
The criticism follows the release of PJM’s latest Base Residual Auction results, which set prices for future energy capacity. While a multi-state effort led by New Jersey secured a price cap that helped avoid a steeper rate hike, Murphy and legislative leaders said the continued increase in costs and stalled infrastructure projects point to systemic problems.
“New Jersey cannot and will not accept a system that puts profits for out-of-state generators ahead of affordability for our residents,” the statement read. “Our clean energy goals have always been rooted in lowering costs, increasing reliability, and building energy right here at home.”
Officials specifically accused PJM of blocking or delaying key infrastructure efforts within New Jersey. They cited the grid operator’s failure to move forward on projects that would generate and deliver energy locally, forcing the state to rely on external providers and driving up consumer prices.
The statement highlighted that energy prices have already hit the cap imposed during the latest auction — a sign, the leaders said, that PJM’s model is failing to keep up with rising demand and affordability needs. “The fact that energy prices have already reached the cap is a clear sign of structural issues at PJM,” they said.
Governor Murphy, along with nine other bipartisan governors, previously sent a formal letter to the PJM Board of Managers demanding reforms. They called for the board to include leaders who represent state interests and who are committed to addressing affordability and energy adequacy. The letter urged that states like New Jersey have a formal say in PJM governance.
In a follow-up post on social media, Murphy stated, “Results of this year’s energy Capacity Auction show that the price cap New Jersey fought for prevented a historic spike in energy prices. As energy capacity prices rise, we will continue to pursue every path to bring greater accountability and transparency to energy pricing.”
In a second portion of the joint statement, Murphy, Scutari, and Coughlin expanded on the broader regional impact, saying that the problem of grid reliability and cost pressures extend beyond New Jersey. They described PJM as “opaque and unresponsive” and said families and businesses across the region are paying the price.
“It has become increasingly clear that grid reliability issues and the current cost crisis are not just a New Jersey problem,” the statement said. “New Jersey is at the forefront of efforts to increase PJM member states’ voice on the Board.”
To counteract the financial burden of PJM’s rate hikes, state leaders highlighted a $430 million relief package announced earlier this year. That funding, aimed at assisting low- and moderate-income residents, will offset the impact of rising electricity bills.
Looking ahead, the officials pledged to continue pursuing a broad strategy to develop clean, in-state energy sources, improve grid efficiency, and keep prices stable. “We will continue to take an ‘all of the above’ approach to creating clean energy that we can control here in New Jersey,” they said.
Murphy and legislative leaders say they are committed to pushing PJM for reforms and expanding New Jersey’s control over its energy future.
