In Hoboken, New Jersey, a recent Facebook post from a local parenting group captured an issue that’s resonating across the community. Dated July 11, the post highlighted a stark rise in utility bills, with the homeowner noting their bill had more than doubled compared to the previous month, asking fellow group members for advice or insights into what could be done about the rise. The response was an overwhelming chorus of similar frustrations, as dozens commented to report that their bills had also surged remarkably.
A year prior, on the campaign trail, President Donald Trump had promised significant reductions in energy and electricity costs, explicitly stating, “Under my administration, we will be slashing energy and electricity prices by half within 12 months — at a maximum, 18 months.” Despite these bold claims, the reality a year later tells a starkly different story, as various states have witnessed rising energy prices.
One central figure in the plight of rising costs is PJM Interconnection, the largest grid operator in the United States, which serves 13 states and a collective customer base of 65 million. The grid operator has come under scrutiny from residents and governors of five East Coast states, each questioning the reasons behind the soaring prices and the apparent unfulfilled promises of the Trump administration.
The situation in New Jersey is particularly tense, with energy prices climbing significantly on June 1. For residential customers, this resulted in a staggering 17-20% increase in utility bills. The utility company PSE&G, in correspondence to its New Jersey base, indicated that the average customer should brace for a typical monthly bill around $183 – a rise by $27. PSE&G explained that this price hike was attributed to an escalated demand for energy coupled with the need for new power generation sources, keeping in mind supply costs that the company claims are passed directly to consumers without profit.
Meanwhile, PJM has reported experiencing a rapid spike in energy demand, driven by increasingly energy-intensive sectors such as artificial intelligence, data centers, electrification, and a revitalized U.S. manufacturing sector. According to PJM’s latest forecast, there is an expected overall energy demand growth of 5% over the next decade.
Experts like Alex Ambrose, a policy analyst at New Jersey Policy Perspective, pinpoint the scarcity of newer, more dependable energy sources as a significant part of the problem. Ambrose argues that renewable energy sources like wind, solar, and batteries are not only the cheapest but also the fastest to deploy, criticizing PJM for its perceived lethargy in integrating these cleaner energy options into the grid. Despite this, the older and more expensive coal gas plants continue to operate.
On the defense, PJM in an op-ed blamed insufficient energy supplies on stringent state and federal decarbonization policies and economic pressures that have expedited the closure of fossil fuel-based power plants in the region. However, PJM also highlighted an ambitious future, with a reported queue of 63 gigawatts of projects predominantly composed of renewable sources, projected to integrate into the grid by 2026 – promising enough capacity to power over 47 million homes.
This escalating issue of rising utility bills is expected to become a significant point of contention in New Jersey’s upcoming governor’s race. Energy Secretary Chris Wright voiced concerns that the Republican party might face political repercussions due to the high energy prices, a situation he attributes to Democratic policies. He underlined a stark political reality; blame tends to fall on those in power.
The issue of affordability continues to be central as New Jersey residents prepare for the November governor’s race. With the Democratic nominee Mikie Sherrill slamming PJM for its alleged grid mismanagement and her Republican counterpart, Jack Ciattarelli, lamenting the closure of crucial electric generation plants by the state’s Democrats, the battleground is set.
Earlier findings from a Fairleigh Dickinson University poll reflect a divided opinion among voters, with some blaming utility companies, others pointing fingers at the Democratic Governor Phil Murphy, and a few holding energy producers responsible. With Governor Murphy not running for re-election owing to term limits, the future political landscape promises to be influenced heavily by the state’s energy management outcomes.
As these issues interplay with wider political narratives, experts like Rob Gramlich, president of Grid Strategies, foresee energy prices staying high, predicting even more intense policy debates around it in the coming years. Gramlich’s forecast might prove prescient as the situation develops, potentially reshaping administrative priorities and energy strategies at both state and national levels.
