Murphy’s Short-term Solution for High Energy Costs

By Anthony Birritteri, Editor-in-Chief On Jun 5, 2025

Amid electric energy costs that have just risen as high as 20% for New Jersey residents, Gov. Phil Murphy today announced a $430 million short-term credit solution that would reduce monthly energy bills for 3.9 million residential ratepayers.

“We will begin deducting at least $100 from every household’s energy bill. For our state’s most vulnerable families (low and middle-income), we will be deducting a total of up to $250 from their energy bills,” Murphy said.

While the $100 credit that applies to all households will be made in one or two payments when “bills are hurting the most,” according to the governor, the extra $150 credit for low and moderate-income households will be spread out from July through December. More details on the initiative will be made available in the coming weeks.

The credits will be funded by the Clean Energy Fund, the New Jersey Board of Public Utilities’ (NJBPU) allocation of Regional Greenhouse Gas Initiative (RGGI) proceeds, and the Solar Alternative Compliance Payment account.

Murphy blamed the PJM Interconnection, which manages the flow of power within a 13-state region, for price spikes, saying it has failed to increase energy capacity, especially from clean energy sources. “As a result, PJM is now trying to pass the buck to the people of New Jersey,” Murphy said.

Ray Cantor, deputy chief government affairs officer at the New Jersey Business & Industry Association, commented that while some criticisms toward PJM may be fair, what was not discussed at the conference was the role that New Jersey’s energy policy decisions have played in the energy price increases we face today.

“The administration pushed policies that drove up the use of electricity and adopted policies that shut down generation and discouraged the development of clean natural gas facilities and other alternatives such as renewable natural gas,” Cantor said.

The state’s Energy Master Plan has had a target to achieve 100% clean energy by 2035 mostly through offshore wind, solar expansion, and other energy efficiency programs. But Cantor said, “From the day the EMP was announced and ever since, we have continuously warned that creating policies that set artificial deadlines for actions and discouraging new generation from sources that include natural gas and nuclear will result in much higher energy prices for our residents and businesses. And here we are.”

Cantor said NJBIA will continue to urge the administration and the state’s legislative leadership to be open to a true, all-of-the-above approach for energy generation, which includes natural gas and more nuclear power. “We need to be realistic and not ideological when it comes to our energy policy in New Jersey,” he said.

Meanwhile, in a written statement, Assemblyman Michael Torrissi (R-8), a member of the Republican Assembly Energy Affordability Task Force, warned that the governor’s relief plan will do nothing to address the root cause of New Jersey’s energy affordability crisis.

“People don’t want gimmicks. They want lower bills,” Torrissi said. “The solution isn’t in handing out credits from slush funds built on ratepayer backs. Working people need reliable energy, the elimination of costly mandates and holding Democrats accountable for accelerating a broken system.”

Murphy said he will continue pushing for wind, solar and nuclear energy solutions to help drive costs down and work with the Legislature and utilities on further reduction solutions.

PSE&G has already amended its May 7 filing with the New Jersey Board of Public Utilities (BPU) to provide additional short-term relief for mitigating the impact of high electric supply costs.

Last month, Kim Hanemann, president and COO, PSE&G, commented, “Utilities are not the cause of the unexpected rise in utility rates, but we have a role to play in providing options to assist our customers.”

Richard Henning, president and CEO of the New Jersey Utilities Association (NJUA), said the association looks forward to working with the Governor’s office and key stakeholders to expand energy affordability heading into the peak summer months. “New Jersey continues to benefit from the strong working relationship between our state government and the utilities, as we address the rate hikes driven by higher supply costs stemming from the increasingly high demand on the grid,” Henning said.

He stressed that NJUA members offer assistance programs, and are committed to helping customers by expanding payment arrangements so customers have extended time to pay their bills, forgoing reconnection fees and proactively ensuring eligible customers are not shut off this summer because they are having trouble paying their utility bills.  “We urge these customers to reach out to their local utility to learn more,” Henning said.

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