Scharfenberger, Inganamort press BPU president on rising electric bills at State House hearing

TRENTON, N.J. — Assembly Republicans Gerry Scharfenberger and Michael Inganamort pressed Board of Public Utilities President Christine Guhl-Sadovy on Friday to explain why New Jersey residents are facing steep electric bill increases, during a joint Senate and Assembly hearing on energy technologies.

Guhl-Sadovy attributed rising costs to regional grid operator PJM and increased electricity demand from data centers, while also pointing to the Murphy administration’s clean energy agenda as a solution through expanded offshore wind and solar power. She rejected suggestions that the closures of nuclear and fossil fuel plants were the primary cause of higher bills.

“You have mentioned some of the facilities that have been closed down over the past few years. It’s ironic that we are talking about nuclear and a plant was just shut down for reasons I don’t fully understand. Would you say the diminishing generation is to blame for these increased costs?” Scharfenberger (R-Monmouth) asked.

Guhl-Sadovy responded, “No. The increase in electricity demand primarily driven by data centers is the driving factor of the tightening of supply and demand.”

Since Gov. Phil Murphy took office, New Jersey’s dependable energy supply has fallen by 20% following the closure of the Oyster Creek nuclear plant and several coal and natural gas facilities. The state consumes more electricity than it produces, importing nearly one-fifth of its power in 2023.

“In the remarks you shared, you had pointed to the prior administration for closing various energy facilities. The hearing was opened by thanking PJM pejoratively for the energy woes we are facing. I heard you identify data centers as part of the problem and I’m dispirited that it falls on a small minority in the legislature that asks the obvious question, ‘Do the people who have run the state of New Jersey for the past eight years have anything to do with this?’” Inganamort (R-Morris) asked.

He also noted that, like other residents, his own electric bill has nearly doubled from $212 in the same month last year to $393, despite his conservation efforts.

“The BPU does not regulate the capacity costs. That is the portion of the customer’s bill that has driven prices up. The June 1 price increase was from capacity auction results from last year,” Guhl-Sadovy replied.

Earlier this year, following the state’s annual supply auction, the BPU approved rate hikes of up to 20% for customers of New Jersey’s major utility companies.

“Despite skyrocketing utility bills, the BPU is doubling down on the governor’s green energy agenda, which is largely responsible for driving up costs. President Guhl-Sadovy stated New Jersey should still be prioritizing clean energy generation like solar and offshore wind even though they are incredibly inefficient and could never meet the demand required to bring down prices. If New Jersey residents want to see lower electric bills, they are going to have to vote for change in November,” Scharfenberger and Inganamort said after the meeting.