TRENTON, NJ – Governor Mikie Sherrill on Monday signed Executive Order No. 1, declaring a statewide emergency in response to what she called an “electricity affordability crisis” that has left New Jersey residents and businesses struggling under record-high utility costs. The order directs the state’s Board of Public Utilities (BPU) to freeze further increases in electric supply rates, issue new bill credits, and conduct a sweeping review of the utility system that has driven prices up more than 30 percent in two years.
The directive follows a dramatic rise in electricity prices between June 2023 and June 2025—more than 33 percent for households and nearly 30 percent for all customers—fueled by a surge in regional capacity costs within the federally regulated PJM power market. Sherrill said the state’s participation in that market has exposed consumers to “systemic failures,” as demand from data centers and other high-usage industries continues to outpace new generation.
The order instructs BPU to provide “Residential Universal Bill Credits” (RUBCs) to offset electricity supply increases set to take effect in 2026. Those credits must be issued by July 1, using funds similar to those allocated for ratepayer relief in August 2025. The BPU, along with the Department of Environmental Protection and the Economic Development Authority, will also consider using proceeds from the Regional Greenhouse Gas Initiative to help low- and middle-income households manage rising energy costs.
New Jersey’s four investor-owned utilities do not profit from electricity supply but earn regulated returns on infrastructure and maintenance investments, which have continued to climb. The order directs BPU to reexamine all components of the Societal Benefits Charge and the Clean Energy Program budget—two major cost drivers on customer bills—to identify potential savings that could be redirected into direct ratepayer relief.
The agency must also produce a comprehensive study within 180 days on modernizing the traditional utility business model, examining reforms such as performance-based ratemaking, multi-year rate plans, and reductions in return on equity. Sherrill said these changes are essential to “restore long-term affordability and accountability” in the state’s energy system.
Key Points: Sherrill declares statewide energy emergency as electric costs surge across New Jersey – Trenton
- Governor Mikie Sherrill declares an emergency over New Jersey’s rising electricity costs.
- BPU ordered to issue bill credits, review rate structures, and study long-term reforms.
- Executive Order No. 1 aims to freeze further rate increases and expand ratepayer relief.
