New Jersey residents are feeling the financial burden of rising electricity bills, and the blame is directed firmly at Governor Phil Murphy and the New Jersey Board of Public Utilities (BPU). Back in June, the BPU was set to approve a significant 20% rate hike but postponed the decision until September 30. In an attempt to ease the pain of higher bills, the BPU announced a $100 Residential Universal Bill Credit for September and October. While this might appear as a relief measure, it actually masks the true cost of utility expenses, leaving New Jerseyans to bear the full weight.
When unveiling this plan, Governor Murphy abstained from taking responsibility for the soaring prices. Instead, he pointed fingers at PJM Interconnection, the grid operator serving New Jersey and several neighboring states, blaming them for a so-called “cost crisis.” Earlier this summer, he recommended that residents set their air conditioning units to maintain temperatures between 76 to 78 degrees Fahrenheit and suggested that household appliance usage be deferred until after 8 p.m. These measures, however, resonate little with Garden State residents.
A recent poll from Fairleigh Dickinson University revealed that 26% of New Jerseyans hold utility companies accountable for the rising electricity costs, while 19% blame the Murphy administration. However, it’s essential to note that utility companies do not establish the prices charged. That authority lies with the BPU, which consists of officials handpicked by Governor Murphy to implement his climate agenda.
The energy crisis stems from Governor Murphy’s ambitious Energy Master Plan that targets a transition to 100% renewable energy sources—including wind, solar, and electric vehicles—by 2035. This significant overhaul is projected to cost New Jersey residents a staggering $1.4 trillion in lost income, equating to about $140,000 for each resident over the next quarter-century, without delivering substantial environmental improvements.
Many families feel the financial stress acutely as energy bills soar past $500 per month. Under Murphy’s leadership since 2017, the state has shut down six power plants, including five coal plants and the Oyster Creek nuclear reactor. This shutdown resulted in a loss of 2,500 megawatts (MW) of generating capacity, forcing the state to consume more electricity than it produces. In fact, New Jersey imports around 20% of its electricity from out-of-state generators, notably Pennsylvania, incurring higher costs due to elevated fuel and transmission expenses.
Research highlights that New Jersey’s transition to green energy has already outstripped the supporting infrastructure, triggering concerns around grid stability and price volatility. The reality remains that New Jersey relies on natural gas and nuclear power for over 90% of its electricity generation, while renewables contribute a mere 8%. This is a stark contrast to the promise of the green transition.
Moreover, states with clean energy mandates frequently experience higher electricity rates than states without such regulations. As it stands, New Jersey boasts the 12th highest electricity rates in the country, averaging 20.49¢ per kilowatt-hour—17.3% above the national average of 17.47¢. Given that the average American household consumes about 10,800 kWh annually, these rates hit family budgets hard.
Warnings have come from PJM regarding the premature retirement of power plants in favor of renewable sources. Similarly, the North American Electric Reliability Corporation (NERC) cautioned in its 2025 Summer Reliability Assessment that increased solar and battery implementations complicate the energy landscape, introducing limitations and volatile supplies. Yet, the Murphy administration continues to deflect blame onto energy producers and PJM, rather than confronting the issues stemming from its own policies.
Even proponents of net-zero emissions admit that New Jersey’s green initiatives are contributing to rising electricity costs. The Regional Plan Association (RPA), an organization in favor of renewable energy, acknowledged that New Jersey’s agenda might increase electricity prices, especially during periods when there isn’t sufficient power generated from renewables to meet demands. They noted, “Renewable energy goals can ‘increase prices if the states do not meet those goals when they are supposed to.’”
To rectify the self-inflicted energy crisis, the Murphy administration needs to explore the feasibility of small modular reactors (SMRs) and alter its Energy Master Plan to reduce emphasis on unstable solar and wind energies. New Jersey is already home to two nuclear plants; smaller reactors could provide a reliable energy source and decrease dependence on costly electricity imports. Instead of addressing systemic errors, the Murphy administration is poised to entrench its expensive plan into law by year’s end.
Polling by Independent Women’s Voice highlights how concerned swing voters are about energy issues in New Jersey. Astonishingly, 80% of these voters expressed worries regarding energy reliability. Upon learning that the state’s electricity rate hike stemmed from Murphy’s climate policies, a notable 53% of women surveyed felt less inclined to support the phaseouts of oil, natural gas, and coal.
Governor Murphy’s approach, underscored by his Green New Deal ambitions, has intensified New Jersey’s energy crisis. In an era where energy reliability is paramount, voters in the Garden State are ready to make their voices heard come election time.
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