Gov. Phil Murphy signed a pair
of bills on Friday that he says will hold the state’s energy grid
operator accountable as the state’s residents grapple with rising
energy costs.
New Jerseyans were hit with a 20% increase in energy prices in
June and are expected to face a smaller bump upwards next year. The
spike in costs has become a potent political issue, with
Republicans using it as a top attack against Democrats as they look
to retake the governorship.
Democrats have largely blamed PJM Interconnection, an
organization that operates the energy grid in parts of 13 states,
including all of New Jersey. They say the firm has failed to efficiently add new energy sources to
the grid, leading to a stagnation in production while new plants
wait to come online. Republicans, meanwhile, say Murphy and
legislative Democrats harmed energy production in the state by
focusing too much on clean energy.
“These bills complement our long-term plan of action to hold PJM
responsible for hardworking New Jerseyans’ skyrocketing electricity
bills and a lack of new energy generation,” Murphy said in a
release. “We are committed to creating a system that is fairer and
more transparent for customers and the states that represent them —
a necessary change from the opaque practices that have, for too
long, defined PJM.”
The first bill signed on Friday, Senate Joint Resolution 154, directs the BPU to
investigate PJM’s pricing model. The second bill, A5463, requires the state’s public utilities to
disclose any votes at PJM meetings and explain how each vote
furthers New Jersey’s goals of “prioritizing the affordability,
reliability, and sustainability” in the energy system. The
Legislature approved each bill on June 30, the last day before
summer break.
“While electric bills skyrocket, PJM’s decision-makers have been
setting our regional power grid policy in secret,” state Sen. Raj
Mukherji (D-Jersey City) said. “That ends today. With the enactment
of the grid transparency law, consequential votes and decisions
impacting what 65 million ratepayers pay and the timeline for
approving clean energy projects in the pipeline will become public
record. This is about sunlight, accountability, and putting
consumers at the center of our energy policy.”
PJM spokesperson Jeff Shields said the legislation does not help
solve the rising costs.
“We understand the political motive to shift blame for high
electricity bills, but the fact remains: PJM operates as a
not-for-profit that plans the power grid and administers federally
regulated wholesale electricity markets,” he said. “Pointing
fingers will not solve the supply-and-demand realities driving
higher prices for consumers in New Jersey, including challenges
that stem from failed policies. Our focus remains on working toward
real solutions, because New Jerseyans deserve nothing less.”
The two bills signed today are part of a broader package
Democrats released in May, when the price spikes were
still looming. In July, Murphy signed another pair of bills from the bundle,
including one directing the BPU to study the impact of newly
constructed data centers on energy demand in the region.
The package is just one way Democrats have sought to stifle the
issue this summer. In June, Murphy announced the state would
invest $430 million into reducing utility bills
this year; he promised at least $100 per household, and up to $250
for low-income households. Republicans called that program an
election-year gimmick.
Before he officially won the GOP nomination for governor, former
Assemblyman Jack Ciattarelli attacked Murphy on energy prices in a
television ad. The Republican, who seeks to replace the
term-limited Murphy, said he would “clean house” at the Board of
Public Utilities, the state’s energy regulatory board.
And Assembly Republican Leader John DiMaio, who is looking to
add to his caucus when all 80 seats come up for grabs this
November, formed a special task force that he said would search for
short- and long-term solutions to rising energy costs.
Earlier this week, the BPU officially approved the plan to give residents
a $100 credit for energy bills. Assemblyman Alex Sauickie
(R-Jackson), a member of the Assembly Telecommunications and
Utilities Committee and the aforementioned energy affordability
task force, said Democrats doomed the state with green-energy
efforts and are blocking the way to reform.
“State Democrats are raising costs, again, and voting down any
real shot at sustainable relief,” he said in a release. “I want
residents to remember that when they go to cast their votes this
November.”
A Fairleigh Dickinson University poll found New Jerseyans are split on who they think
is at fault for the increase in costs. A plurality of New
Jerseyans, 26%, said they blame the state’s utility companies, like
PSE&G, even though they have no control over the rates. A majority of
Republicans blame Murphy or the Democratic-led Legislature; a
sizable chunk of Democrats, 22%, blame the Trump-run federal
government.
“The bottom line is that people in New Jersey don’t really know
why their electric bills are going up, so they’re blaming whoever
they don’t like,” Dan Cassino, the poll’s executive director, said
in the polling memo. “Republicans blame Democrats in state
government; Democrats blame Trump and what they see as greedy
companies.”
The post Murphy signs bills addressing power grid operator
as energy cost woes continue appeared first on New
Jersey Globe.