Gov. Sherrill signs energy bills, announces utility bill credits expected to save New Jerseyans $1 billion annually
TRENTON, N.J. — Gov. Mikie Sherrill on Tuesday signed three energy-related bills aimed at reducing electricity costs, increasing oversight of utility companies and requiring large data centers to pay a greater share of energy infrastructure costs, while also announcing immediate utility bill credits for millions of New Jersey residents.
According to the governor’s office, the legislation, combined with other energy initiatives taken during the administration’s first six months, is expected to save New Jersey ratepayers more than $1 billion annually, based on an analysis by Synapse Energy Economics.
In addition to signing the legislation, Sherrill announced a $25 credit for all 3.6 million New Jersey ratepayers through the Residential Universal Bill Credit program. Lower- and moderate-income households will also receive an additional $150 credit through the Residential Energy Assistance Payment program.
“I made a commitment to rein in energy costs, and today we are delivering on that commitment,” said Governor Sherrill. “For too long, New Jersey families have paid the price for poor oversight, outdated policies, and rising demand on our electric grid by unchecked actors.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 through stronger oversight and smarter incentives that will drive down costs and strengthen our grid. The actions we have taken over the last six months, including the bills I signed today, will save New Jerseyans more than $1 billion every year. We will continue using every tool at our disposal to lower costs for families and build a more affordable and reliable energy future for New Jersey.”
The legislation signed Tuesday repeals an incentive that allowed utility companies participating in regional grid operator PJM to receive higher returns on equity, a cost that was ultimately passed on to ratepayers.
Another measure, known as the Advanced Grid Technologies Act, requires utilities to obtain state approval before constructing certain transmission projects, closing what the administration described as a regulatory loophole that allowed companies to move forward with costly infrastructure projects without state oversight.
A third bill establishes a separate ratepayer class for large data centers, requiring them to pay for their own electricity demand and related grid upgrades rather than shifting those costs to residential and small business customers. The measure also encourages data centers to bring additional clean energy resources onto the grid and reduce energy consumption during periods of peak demand.
The governor also highlighted recent actions by the New Jersey Board of Public Utilities, including renewing the Summer Termination Program, which protects eligible households from utility shutoffs during periods of extreme heat, and approving 12 new solar projects expected to generate enough electricity to power approximately 45,000 homes.
Tuesday’s announcement builds on several energy initiatives launched during Sherrill’s first six months in office, including executive orders freezing electric rate hikes, expanding clean energy development, creating a Nuclear Task Force, supporting community solar expansion, funding clean energy projects and advancing policies aimed at regulating the growing energy demands of data centers.
