New Jersey experienced one of the worst energy bill spikes last year—only Washington D.C. tops it
New Jersey households paid significantly more on their electricity bills in 2025 compared to 2024, with the average family facing a $260 annual increase. It was one of the largest jumps in the country, and a major point in the 2025 Gubernatorial race.
According to data from the Congressional Joint Economic Committee, New Jersey experienced a 16.9% increase in household electricity costs year-over-year. Only Indiana saw a comparable increase at $260 (16.3%) and D.C. at $320 (23.5%).
Nationally, the average American household paid approximately $110 more for electricity in 2025 than in 2024—a 6.4% increase nationwide.
A Promise Unfulfilled
During his 2024 campaign, President Donald Trump repeatedly pledged that energy bills would be “cut in half” within his first year in office. Instead, electricity costs across nearly every state increased significantly in 2025.
12 states and Washington D.C. experienced increases north of 10%, with New Jersey among the hardest hit. Only four states in the nation—Arizona, California, Nevada, and Hawaii—reported lower bills during the same period.
The data paints a stark picture for New Jersey consumers already burdened by some of the nation’s highest cost of living—including a 3.2% increase in 2026.
Why New Jersey?
New Jersey’s dramatic increase in electricity costs isn’t exactly news—it reflects broader energy market pressures and regional factors affecting the Northeast. The state’s power reliance on natural gas, infrastructure upgrades, and regional transmission costs all contributed to higher bills for residents and businesses.
Broken down, the $260 annual increase translates to roughly $22 per month for the average household. For families already struggling with rising house prices, property taxes, and nationwide inflation, it’s yet another added cost.
To add to the pressure, proposed AI data centers are being protested across the state as unnecessary strain on an already stretched grid.
National Context
The national average increase of $110 per household comes with significant regional variation.
The Midwest and Northeast bore the heaviest burdens, with Indiana, Illinois, Pennsylvania, and Kentucky all experiencing double-digit percentage increases. The South experienced more moderate increases, while a handful of Western states saw decreases.
The Congressional Joint Economic Committee’s analysis, released in March 2026, measured electricity costs using federal Energy Information Administration data covering all twelve months of 2025. According to them, the findings directly contradict the administration’s energy policy promises.
What’s Next
New Jersey has put forward steps that could help ease electricity costs.
Governor Sherrill coasted to Trenton on a promise to freeze rate hikes, and New Jersey is currently in the midst of developing a Virtual Power Plant program, which could turn solar panels, home batteries, and EV chargers into a coordinated power grid. Just last week, the New Jersey Assembly advanced a bill that would expand nuclear energy within the state.
In a state that can’t escape rising costs across the board—including one of the highest electricity bill spikes in the nation—these small steps of progress matter. But patience is wearing thin.