New Jersey Governor Phil Murphy, along with Senate President Nick Scutari and Assembly Speaker Craig Coughlin, has announced a $430 million relief package aimed at reducing energy costs for residents across the state. The initiative comes as utility rate increases—effective June 1, 2025—are expected to raise electricity bills by approximately 20% compared to last year, driven by record-high wholesale prices.
The relief package will provide all 3.9 million electric ratepayers in New Jersey with a minimum of $100 in direct bill credits. Additionally, low- and moderate-income (LMI) households will receive at least $150 more in targeted assistance. Funding for the credits will come from the Clean Energy Fund, proceeds from the Regional Greenhouse Gas Initiative (RGGI), and the Solar Alternative Compliance Payment account.
State officials characterized the relief as a necessary response to sudden and significant increases in utility rates following a capacity auction managed by regional grid operator PJM Interconnection. Critics of PJM argue that poor planning and delays in approving new renewable energy projects contributed to the spike in electricity costs.
In addition to providing immediate assistance, the administration and legislative leaders pledged to pursue long-term reforms. These include strengthening oversight of PJM’s market operations, accelerating the integration of renewable energy sources, and increasing New Jersey’s in-state energy production. This year, New Jersey surpassed 5 gigawatts of installed solar capacity, enough to power approximately 750,000 homes.
The announcement follows a request by Governor Murphy in April for the Federal Energy Regulatory Commission (FERC) to investigate potential market manipulation in PJM’s capacity auction and to expedite approvals for clean energy projects awaiting connection to the regional grid.