NEW JERSEY — Governor Phil Murphy, Senate President Nick Scutari, and Assembly Speaker Craig Coughlin announced Thursday that New Jersey will provide more than $430 million in direct relief to help offset rising energy bills for the state’s 3.9 million ratepayers.
The relief measure comes in response to a utility rate increase that took effect June 1, as residents face a 20% hike in electric bills compared to last year, driven by record high wholesale electricity prices.
Under the plan, all residential utility customers will receive a minimum of $100 in direct credits on their energy bills. Low-to-moderate income (LMI) residents will receive at least an additional $150. The relief will be automatically applied and is funded by the Clean Energy Fund, the Board of Public Utilities’ share of Regional Greenhouse Gas Initiative (RGGI) proceeds, and the Solar Alternative Compliance Payment account.
“Today, we are coming together to provide critical economic relief to the people of New Jersey by directly lowering the cost of their monthly energy bills,” Murphy said. “This is a short-term solution. We must hold PJM accountable for the untenable and unconscionable costs they’ve forced on our state.”
Murphy and legislative leaders criticized PJM Interconnection, the regional grid operator, for what they called a “flawed” energy auction process that contributed to the surge in rates. Senate President Scutari said PJM’s mismanagement had made the upcoming utility bills “unaffordable and unfair.”
Assembly Speaker Coughlin praised the new Universal Credit and the reinstatement of the REAP (Residential Energy Assistance Program), calling it “meaningful and immediate relief.”
Lawmakers pledged to continue pursuing reforms to the PJM system, while also expanding renewable energy sources in the state. Murphy pointed to New Jersey’s recent milestone of 5 gigawatts of installed solar capacity, enough to power 750,000 homes, but criticized PJM for delaying the integration of new energy projects into the grid.
