New Jersey residents could see electricity bills rise yet again following a record-setting auction held by the regional power grid operator PJM Interconnection.
The auction, which sets future wholesale electricity rates, closed at nearly $330 per megawatt-day—a 22% increase over last year, potentially raising bills between 1.5% and 5% once implemented.
The increase would come on top of a 20% hike already in effect this year, approved by the state’s Board of Public Utilities.
PJM said rising demand, limited new supply, and delays in renewable energy integration contributed to the spike. The grid operator cited growing use from electric vehicles, manufacturing, and data centers as key drivers.
NJ lawmakers responded with sharp criticism, with both parties placing the blame in different areas. Republicans blamed the cost surge on clean energy policies pushed by Democratic leadership, while Democrats aimed their frustrations at PJM’s handling of energy supply and delays in project approvals.
PSE&G, the state’s largest utility, expects its own rate impacts to remain relatively flat—contingent on energy costs elsewhere staying stable.
With another cost increase on the way, energy policy is likely to be a hot topic throughout the rest of the 2026 gubernatorial race. Democratic candidate Mikie Sherrill and Republican candidate Jack Ciattarelli have each signaled plans to address high utility costs in the state.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.