New Jersey, October 21, 2025
As electricity costs surge in New Jersey, debates intensify among gubernatorial candidates over strategies to address affordability and sustainability. Residents are feeling the pinch from rising utility bills and ongoing challenges with the energy grid. Candidates are outlining their plans to tackle these pressing issues, emphasizing the need for both immediate solutions and long-term sustainability strategies to ease the financial burden on families and businesses across the state.
Trenton, New Jersey
New Jersey residents are grappling with significant increases in electricity bills, a situation that has become a central issue in the state’s gubernatorial race. Both major candidates have proposed plans to address the affordability crisis and enhance the state’s energy sustainability.
Surge in Electricity Prices
In July 2025, New Jersey’s household electricity rates were approximately 22% higher than the previous year. This surge is attributed to increased demand from new data centers and insufficient supply connecting to the grid to meet that demand. Nationwide, power prices have risen by 6.2% over the past year, more than doubling the overall inflation rate of 2.9%.
Gubernatorial Candidates’ Proposals
Republican nominee Jack Ciattarelli has criticized the current administration’s energy policies, including the closure of electric generation plants and the lack of expansion in nuclear power generation. He has pledged to declare a state of emergency on energy costs and focus on reducing overall state spending to alleviate the financial burden on residents.
Democratic candidate Mikie Sherrill has vowed to freeze utility rates on her first day in office. Her plan includes expanding investments in new, cheaper, and cleaner power generation, such as solar and battery storage projects, and increasing transparency and accountability from New Jersey utility companies.
State Actions to Mitigate Costs
Governor Phil Murphy has called for a formal investigation into potential market manipulation by PJM Interconnection, the regional transmission organization serving New Jersey. The investigation aims to determine if such manipulation has led to higher energy prices affecting consumers and businesses in the state.
Additionally, the Murphy Administration has taken steps to lower utility bills by requiring New Jersey’s four investor-owned electric utilities to file proposals for mitigating bill impacts during high-usage summer months. These proposals include rate deferment and other opportunities to provide rate stabilization and savings where possible.
Background Context
The rising electricity costs in New Jersey are influenced by several factors, including increased demand from data centers and the electrification of various sectors, as well as reduced generation capacity following the closure of coal and nuclear plants. Supply chain delays have also slowed new energy projects, and the state remains connected to PJM Interconnection, which oversees much of the region’s power supply.
As the gubernatorial election approaches, energy policy and the affordability of electricity remain pivotal issues for New Jersey voters, with candidates offering differing approaches to address the challenges facing the state’s energy landscape.
Frequently Asked Questions (FAQ)
What is causing the rise in electricity prices in New Jersey?
The surge in electricity prices is due to increased demand from new data centers and insufficient supply connecting to the grid to meet that demand. Additionally, nationwide power prices have risen by 6.2% over the past year, more than doubling the overall inflation rate of 2.9%.
What are the gubernatorial candidates proposing to address high electricity costs?
Republican nominee Jack Ciattarelli has pledged to declare a state of emergency on energy costs and focus on reducing overall state spending to alleviate the financial burden on residents. Democratic candidate Mikie Sherrill has vowed to freeze utility rates on her first day in office and expand investments in new, cheaper, and cleaner power generation, such as solar and battery storage projects.
What actions has the state government taken to mitigate rising electricity costs?
Governor Phil Murphy has called for a formal investigation into potential market manipulation by PJM Interconnection, the regional transmission organization serving New Jersey. The Murphy Administration has also required New Jersey’s four investor-owned electric utilities to file proposals for mitigating bill impacts during high-usage summer months, including rate deferment and other opportunities to provide rate stabilization and savings.
How are supply chain delays affecting New Jersey’s energy projects?
Supply chain delays have slowed new energy projects in New Jersey, contributing to the rising electricity costs. These delays have impacted the state’s ability to expand its energy infrastructure and integrate renewable energy sources into the grid.
What is PJM Interconnection, and how does it impact New Jersey’s electricity prices?
PJM Interconnection is the regional transmission organization that oversees the electricity grid for New Jersey and several other states. It manages the availability of electric supply and sets capacity prices, which can influence electricity rates for consumers.
Key Features of New Jersey’s Electricity Cost Situation
| Feature | Description |
|---|---|
| Current Electricity Rate Increase | Approximately 22% higher in July 2025 compared to the previous year. |
| Gubernatorial Candidates’ Proposals | Jack Ciattarelli plans to declare a state of emergency on energy costs and reduce state spending; Mikie Sherrill aims to freeze utility rates and invest in cleaner power generation. |
| State Government Actions | Governor Murphy has called for an investigation into potential market manipulation by PJM Interconnection and required utilities to propose mitigation plans for bill impacts. |
| Supply Chain Delays | Delays have slowed new energy projects, affecting the state’s ability to expand energy infrastructure and integrate renewable sources. |
| PJM Interconnection’s Role | As the regional transmission organization, PJM manages the electricity grid and sets capacity prices, influencing consumer electricity rates. |
Deeper Dive: News & Info About This Topic
HERE Resources
GOP Candidate Jack Ciattarelli and Democrat Mikie Sherrill Unveil Economic Plans for New Jersey
Data Centers Spark Utility Cost Concerns in New Jersey
Author: NEW JERSEY STAFF WRITER
The NEW JERSEY STAFF WRITER represents the experienced team at constructionnjnews.com, your go-to source for actionable local news and information in New Jersey and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New Jersey Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of New Jersey and the New Jersey Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Gibbons P.C. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
