When New Jersey residents in the Greater Meadowlands Region get their PSE&G bills in September and October, they will see a big surprise: a $50 credit each month.
The New Jersey Board of Public Utilities has approved a $100 credit for electric customers across the state, which will be automatically applied in two $50 installments on bills in September and October. It covers all 3.9 million residential customers statewide who have active accounts with Public Service Electric and Gas, Atlantic City Electric, Jersey Central Power and Light, or Rockland Electric.
Gov. Phil Murphy said the move is one way to help address rising electricity costs linked to regional energy markets. A number of factors are being blamed, from surging demand caused by data centers, to delays in connecting new, especially renewable, energy sources to the grid.
“Providing economic relief to our residents is critical in managing rising electric costs from the PJM cost crisis,” Murphy said. “No New Jerseyan should fear losing electricity, and we will continue to work with BPU to ensure necessary action is taken.”
NJBPU President Christine Guhl-Sadovy said the credits are part of a larger $430 million relief effort. “This is a key tool to help residents in the short term, while we work to bring more electricity online to lower costs for all ratepayers,” she said.
Quick Facts: Energy Assistance in NJ
- Bill Credit: $100 total, applied as $50 in September and $50 in October
- Who Gets It: All 3.9 million residential customers of PSE&G, Atlantic City Electric, JCP&L, and Rockland Electric
- Additional Aid: REAP program gives qualifying households $175 extra through February 2026
- Other Programs Available:
- Universal Service Fund (USF)
- Fresh Start (debt forgiveness with USF)
- PAGE Program (Payment Assistance for Gas and Electric)
- LIHEAP (Low Income Home Energy Assistance Program)
- Lifeline (for seniors and people with disabilities)
- NJ Shares (nonprofit grants)
- NJ Comfort Partners (energy efficiency/weatherization)
- Winter Termination Program (no shutoffs Nov. 15–March 15)
More information on eligibility and enrollment is available at www.nj.gov/bpu.
What is PJM, Why Are Prices Surging?
The PJM Interconnection is a regional transmission organization (RTO) coordinating the movement of wholesale electricity and managing the largest electricity grid in the U.S. RTOs are authorized by the Federal Energy Regulatory Commission (FERC).
Its region spans all or parts of 13 Mid-Atlantic states — Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia — and Washington, DC.
PJM is one of several RTOs in the U.S. and operates competitive wholesale markets where electricity is bought and sold. PJM also manages the process for connecting new generation facilities to the grid, including reforms to streamline the process and integrate new technologies.
The company manages 88,333 miles of transmission lines for over 67 million people, according to its website. High demand for electricity and retiring power plants combined with significant price increases at auctions, are being blamed for record-high electric bills. There is also bottleneck in connecting new power generation projects to the grid, according to several reports.
The rapid growth of data centers, particularly those serving artificial intelligence applications, is significantly driving up electricity demand. Data centers can require 1,000 MW (equal to 1 GW). A single gigawatt is comparable to the power consumption of San Francisco or Seattle — around 800,000 people. Demand is not anticipated to go down.
Data center load growth has tripled over the past decade and consumed about 4.4% of total U.S. electricity in 2023, according to a 2024 Department of Energy report. By 2028, data centers are expected to consume approximately 6.7 to 12% of total U.S. electricity.
New Jersey summer peak load is projected to increase by 0.1% to 1.3% annually over the next ten years, while the winter peak is projected to increase by 2.4% to 4.0%, depending on the transmission zone, according to the PJM 2024 New Jersey Infrastructure report.
Founded in 1927, PJM Interconnection is an independent, federally regulated organization headquartered near Valley Forge, Pennsylvania.
NJ Legislation Calls For Investigation, Transparency
Gov. Phil Murphy signed two bills on Friday, Aug. 15 — A5463/S4363 and AJR216/SJR154 — to increase public accountability and transparency in decision-making by PJM and its members. Bill A5463/S4363 also tasks the NJ BPU with investigating PJM Interconnection and the auction process.
During the auction process, suppliers submit bids to provide energy. While the BPU oversees the auction, it has limited power when it comes to pricing.
“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,” said Murphy.
“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,” Murphy added.
The recent PJM Interconnection capacity auction for the 2026/2027 delivery year resulted in a record-high price of $329.17 per megawatt-day across the entire PJM region, according to reports.
New Jersey, alongside other states, has sent multiple letters to the PJM Board of Managers since PJM’s June 2024 capacity market auction and has made multiple filings with the Federal Energy Regulatory Commission (FERC) on how to improve PJM’s capacity market rules.
New Jersey continues the work to vigorously incentivize the development of new generation sources in-state to meet the growing electricity demand, which is influenced by regional grid-wide factors, the governor’s office said.
“Affordability is always top of mind for us at the NJBPU,” said Guhl-Sadovy. “While we continue to advocate at the regional level to address PJM’s flawed market rules and work to develop key programs and spur investment in new energy resources in-state, PJM must come to the table and demonstrate that the ratepayers of New Jersey, and throughout the region, are a priority.
“The lack of transparency in their regular business, coupled with more than a thousand clean energy projects stuck in their red-tape cannot continue. The recent, dramatic capacity auction price increases demonstrate that the status quo must change. It’s hurting ratepayers and it’s constraining energy jobs. Transparency is the first step toward accountability.”
