Gov. Murphy Puts Heat On Energy Distributor Amidst Skyrocketing Costs

NEW JERSEY - Governor Phil Murphy met with regional grid operator PJM on Monday to push forward more than 1,500 projects in the que that would help combat the rise in costs.

PJM Interconnection, L.L.C. is the regional entity responsible for coordinating the flow of electricity and ensuring its reliable and cost-effective distribution in New Jersey, several other states, and the District of Columbia.

"Clearing this backlog is key to protecting consumers from rapidly rising energy bills this summer and beyond," Murphy added.

(Photo Credit: Governor Phil Murphy/Facebook)

This all comes after the parties behind the planned Atlantic Shores offshore wind power project have requested to cancel their agreement, calling it "no longer viable" due to political and cost challenge roadblocks. The joint venture, comprising Shell New Energies and EDF Renewables, planned to build a 2.8 gigawatt collection of 197 turbines off Long Beach Island and Brigantine that would have powered about 700,000 homes.

According to North American maritime industry journal, WorkBoat, Critics of the Murphy administration’s energy policy had blamed his emphasis on renewable sources for triggering rising costs for New Jersey rate payers. Still, supporters like Ed Potosnak, executive director of the New Jersey League of Conservation Voters, tells Workboat he believes this was a major missed opportunity:

"Now to add insult to injury another state will likely get those benefits...we need to be building clean energy to lower costs, create good jobs...lessen our dependence on dirty and expensive oil and gas, and protect our communities from the dangers of climate change. In New Jersey we lead, and we’re not giving up on offshore wind due to a temporary setback.”

In February, Shell withdrew from the project as an equity partner after a $996 million impairment was filed with Atlantic Shores. The development was also handed a major hurdle after President Trump signed an executive order earlier this year that had temporarily halted leasing and permitting for wind farm projects in the United States, calling them "unsightly and envionmentally unsound."

"This filing marks the closing of a chapter, but not the end for Atlantic Shores," Atlantic Shores Offshore Wind CEO Joris Veldhoven said in a statement. "Offshore wind continues to offer New Jersey a strong value proposition that includes thousands of good paying jobs, stable power prices, and real economic benefits."

The project would be New Jersey's first offshore wind farm.

This clean energy setback also comes after last week's announcement of "immediate and direct relief" to help combat the massive monthly power bill rate hike that went into effect on June 1. As a result of last year’s annual New Jersey Basic Generation Service (BGS) auction, customers of Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy all are bracing for between a 17.2 and 20.2 percent increase in their monthly bills this year. The BGS determines what the providers pay for power from outside of New Jersey.

RELATED COVERAGE: NJ Lawmakers Scramble To Stop Utility Increase

Beginning in July, the NJ Board of Public Utilities (BPU) plans to deduct at least $100 from the energy bills of every New Jersey household. Middle and lower-income residents may be eligible for a larger deduction of up to $250.

Governor Murphy said the state will allocate more than $430 million to energy cost relief.

MORE FROM PATCH: Energy Providers Propose Relief Plans For Higher Monthly Bills