Bold New Electricity Plan Could Mean Hundreds In Savings For NJ Families

New Jersey households could save hundreds of dollars on their skyrocketing electricity bills, according to a new independent analysis from Synapse Energy Economics.

The clean energy advocates outlined a plan that they claim state leaders can take immediate action on that could save the average New Jersey household $467 per year by 2030.

On Thursday, the Natural Resource Defense Council shared a release presenting the analysis and plan.

"This new independent research backs up what New Jerseyans have been saying for a long time: It's time for action to hold PJM and utilities accountable, get cheap, clean power on the grid fast, and guarantee that big tech data centers don't pass on their power costs on to working families," said Senator Andrew Zwicker (D-16).

"We estimate that by 2028, the average family in New Jersey could be paying around $70 a month extra on their electricity bills if policymakers don’t take action to mitigate the costs imposed by data center growth," stated David Amanfu, Building Decarbonization Advocate at NRDC (Natural Resources Defense Council).

To counter this, the report identifies four steps New Jersey leaders can take:

1. Build and connect more clean energy through siting and interconnection reforms to clear PJM’s backlog
2. Require large data centers to supply their own clean, affordable power to avoid passing costs to households
3. Tackle excess utility profits by lowering monopoly utilities’ guaranteed return on investment
4. Adopt smart EV charging and building electrification programs to ease strain on the grid and cut costs for all consumers

If all of these actions are taken, Synapse's findings claim it would reduce household electricity costs by 21 percent in 2026 and deliver an estimated $4.3 billion in total savings statewide by 2030.

“New Jersey voters demanded action on energy affordability. With these practical steps, state leaders have the chance to hit the ground running and deliver it,” said Evergreen Collaborative States Vice President Justin Balik. “By deploying cheap, clean energy, holding PJM accountable, and reigning in utilities, New Jersey can start cutting costs for families and deliver real progress in tackling the affordability crisis.”

The report by Synapse Energy Economics also claims that if lawmakers don't do anything, New Jersey households' electric bills are on track to rise sharply through the end of the decade. They blame federal instability, the repeal of federal clean energy investments, and PJM Interconnection’s fossil fuel favoritism and grid mismanagement.

Governor-elect Mikie Sherrill has repeatedly called for immediate action from the state’s grid operator, PJM.

"New Jersey’s grid operator PJM has refused to connect enough new, cheap, and clean energy generation to the grid for years, but New Jersey waited to act until we were hit with a 20% rate increase. While other states were taking action, New Jersey hesitated and was sidelined for far too long. The result is that we don’t have enough in-state generation to keep costs low and we risk missing our clean power targets. That is unacceptable. In my administration, Board of Public Utilities nominees, who hold huge power over rate hikes, will share my commitment to driving down energy costs above all else. If they don’t, they shouldn’t get too comfortable," said Sherrill during her campaign.

Zwicker vowed to work with other lawmakers and Sherrill to bring savings to New Jersey families.

"We know these policies can deliver meaningful savings that families are counting on, and I look forward to working with my colleagues in the Senate and the incoming governor to use every tool at our disposal to get cheap, clean power on the grid and fight rising costs," said Zwicker.

Read Synapse Energy Economics' full report here.

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