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The state agency responsible for regulating utilities in New Jersey has taken an “all-hands-on-deck” strategy to help mitigate coming spikes in the amount Garden State residents will pay for electricity, residents were told at an April 23 forum in the Township Council chamber.
Measures are also being taken in the state Legislature, forum attendees were told.
The energy forum was co-hosted by Mayor Phil Kramer, Township Councilmember Ed Potosnak, and state Assemblyman Joe Danielsen.
Also on hand was Joe Grillo, the state Board of Public Utilities’ ombudsman.
The company that controls electric rates for New Jersey and 12 other states and the District of Columbia – PJM Interconnection – announced earlier this year that electric rates will increase by 17 percent to 20 percent starting June 1.
The major reason, according to PJM, is the anticipated surge in use of the electrical grid as new data centers meant to serve the growing Artificial Intelligence industry come online.
Danielsen (D-17) said during the forum that the reason for the price hike is “greed.”
“The problem is the greed, the utter, ugly, disgusting greed of PJM, which prioritizes dirty, expensive power plants over the clean energy alternatives,” he said. “While the federal government, which is supposed to be there to hold them to account, completely ignores them.”
Danielsen has introduced A 5564, a bill that would require “submission of energy usage plans to BPU for proposed artificial intelligence data centers,” and also require that “all electricity for artificial intelligence data centers to be derived from new clean energy sources,” according to the state Legislature web site.
Danielsen said that PJM is not allowing “clean energy” companies from becoming part of the consortium that supplies electricity to the 13 states under PJM’s purview, which, he said, would lessen the strain on the electrical grid.
“PJM only answers to the Federal Energy Regulatory Commission, which only answers, I guess, to the President of the United States,” he said. “And unfortunately, the Trump administration and Republican majority in Congress are beholden to the corporate money from Texas, Arizona, Oklahoma, where the oil lobby just reigns supreme. And their slogan, drill, baby, drill, well, that has nothing to do with the energy costs happening in New Jersey.”
Grillo said the state offers a number of programs to lessen the impact of the electricity rate hikes on homeowners.
The BPU has “limited authority to mitigate these increases, but we also obviously realize and appreciate the fact that this is an all hands on deck effort to try to mitigate these increases,” he said.
Among the initiatives the BPU and state have implemented:
- The BPU gave out nearly $50 million in Residential Energy Assistance Payments in 2024.
- Offers a portal on the BPU web site for residents to subscribe to Community Solar as a means to enjoy the cost reductions of solar energy without having to place panels on their homes.
- BPU has ordered utilities to “develop a cost-savings plan to identify opportunities to lessen the impact of these rate increases, at least in the short-term.”
- The BPU has initiated energy efficiency programs that have saved ratepayers $600 million.
- Created the Universal Service Fund, which provides monthly credits of up to $180 for household utility bills, and offers forgiveness of overdue utility bills through the Fresh Start program.
- Created the LIHEAP program to help homeowners pay heating costs during winter months.
- Created the Winter Termination Program, which prevents utility shutoffs during the winter months from November to March.
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