These 3 Laws Will Cut NJ Electric Bills, Sherrill Says

Gov. Mikie Sherrill signed three major bills into law on Tuesday that she says will help to lower the price of electricity for New Jersey residents.

Sherrill said the legislation will hold utility companies and artificial intelligence (AI) data centers accountable for their share of skyrocketing energy costs in the Garden State.

“For too long, New Jersey families have paid the price for poor oversight, outdated policies and rising demand on our electric grid by unchecked actors,” the governor said.

“Today, we're putting money back into people's pockets while holding utility companies and large data centers accountable through stronger oversight and smarter incentives that will drive down costs and strengthen our grid,” Sherrill said.

Here’s what the three laws signed Tuesday will do, according to the governor’s office:

• S1673/A2757 – “Will eliminate unnecessary utility incentives that increase electricity costs”
• S4411/A5188 – “Will strengthen state oversight of utility infrastructure investments to prevent wasteful spending and encourage smarter grid upgrades”
• S731/A796 – “Will ensure large data centers pay their fair share for energy instead of shifting costs onto New Jersey families and small businesses”

Sherrill claimed her administration has taken actions that will save New Jersey ratepayers more than $1 billion annually since taking the reins from former governor Phil Murphy in January. Some of those moves have included freezing rate hikes, lifting a four-decade ban on building nuclear power plants, and pursuing more clean energy such as solar and battery storage.

The governor’s announcement comes as some experts predict that electric prices may spike again in the near future, partly due to an ongoing surge in demand driven by data centers.

>> READ MORE: NJ Electric Costs Will Rise Again, New Report Says

Several Democratic leaders said the latest bills are a win for New Jersey.

Assembly Speaker Craig Coughlin said the legislation will “hold the line on energy costs for families and businesses.”

Meanwhile, Sen. Andrew Zwicker argued that lowering residents’ bills isn’t as easy as creating more power.

“Addressing the rising cost of electricity doesn't just require us to bring new energy sources online — it also requires us to modernize our electric grid and better oversee utility providers to deliver power more efficiently and affordably,” Zwicker said.

Sherrill’s announcement also got a thumbs-up from advocacy groups like Power Play NJ, which cheered for the additional regulations for AI data centers.

“New Jersey families and small businesses already pay some of the highest electricity bills in the country, and large data centers are now the single fastest-growing source of new demand on the regional grid,” the group said.

“[This bill] shows that economic growth and innovation do not have to come at the expense of hardworking families,” advocates added.

NJ CUSTOMER CREDITS SEE CUTS

Sherrill also announced that a popular credit program for Garden State utility customers will see a $75 reduction this year.

The Residential Universal Bill Credit (RUBC) program provides energy bill assistance to New Jersey residential ratepayers with one of the four public, investor-owned utility companies: Public Service Electric and Gas, Atlantic City Electric, Jersey Central Power and Light, and Rockland Electric Company.

According to the governor’s office, the RUBC program will be offering a $25 credit to 3.6 million New Jersey ratepayers: a drop from $100 per ratepayer in 2025.

U.S. Rep. Jeff Van Drew, a Republican from New Jersey, was among those criticizing the reduction.

“Twenty-five dollars? Are you serious?” the congressman said after the recent announcement from the New Jersey Board of Public Utilities.

“Families are opening electric bills that have gone up by hundreds of dollars, and the state's answer is to cut last year's $100 credit to just $25,” Van Drew said. “Instead of sending families another one-time credit, the state should stop adding government-mandated costs and surcharges to electric bills every month. Reducing those costs would do far more than a one-time $25 credit ever will.”

“New Jersey families do not want another temporary fix – they want lower electric bills,” Van Drew said.

Sherrill pointed out that lower- to moderate-income families can also get some relief through the Residential Energy Assistance Payment (REAP) program, which will offer an additional $150 credit headed into the summer months. The program offered a one-time credit of $175 in 2024 and 2025.

Learn more about both programs and other utility bill assistance aid in New Jersey here.

REPUBLICAN PLANS, TRUMP

Republican state lawmakers have proposed their own ways of lowering energy costs for New Jersey residents.

Sen. Anthony Bucco recently suggested that New Jersey should withdraw from the Regional Greenhouse Gas Initiative, a multi-state agreement to cap and reduce carbon dioxide emissions from the power sector.

Senate Republicans have also introduced a bill that would temporarily suspend the sales and use tax as well as the Societal Benefits charge on electric and gas bills in New Jersey.

“Ending New Jersey’s decades-old moratorium on nuclear power plants was a step in the right direction, but more needs to be done to actually bring energy costs down,” Bucco said.

“I’ve heard from concerned constituents in my district, and the dollar amount that people are paying on their monthly bills is not decreasing,” the senator added. “That is a clear sign that the current policy of freezing electricity rates is not working.”

Assembly Republicans have also put forth some suggestions for lowering electric prices in New Jersey, claiming that the solution is simple: “build more energy, faster.” This includes expanding natural gas and developing fusion technology.

Assembly GOP members said New Jersey needs to stop looking outside of its own borders for more energy:

“Statewide power generation has dropped 21% since 2016, falling from 6.47 million megawatt-hours per month to just over 5.1 million in 2024. More than 1,600 megawatts of reliable in-state generation have been retired, with more closures on the way. The result? New Jersey now imports over 40% of its electricity, leaving families exposed to higher costs and a less reliable grid.”

On the flip side of the coin, some advocates insist that a share of the blame for rising utility costs should go to the federal level.

According to Climate Power, a group that focuses on the “politics of climate,” the Trump administration’s “attacks” on clean energy have led to the cancellation or delay of more than 8,500 jobs and $3.69 billion of investment in New Jersey.

“[President Donald] Trump promised to cut electricity prices in half and keep Americans out of foreign wars,” Climate Power senior advisor Jesse Lee said. “Instead, Americans are paying more at the pump and to keep their lights on.”

• Related: Sherrill Lifts 40-Year Ban On New Nuclear Power Plants In NJ
• Related: Trump Puts Pause On Wind Farms, Wants Oil/Gas Drilling Off NJ Instead
• Related: NJ Electricity Costs Have Surged A Shocking 17 Percent: Here’s Why
• Related: Data Centers Are One Reason NJ Electric Bills Have Gotten So High

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