Bucco Sounds Alarm on Rising Utility Costs in NJ Following 800% Increase in Power Grid Auction

August 12, 2024

Renews Call for Cost Analysis of Murphy’s Energy Master Plan

Senate Republican Leader Anthony M. Bucco (R-25) raised concerns about escalating energy costs and future grid reliability for New Jerseyans following the latest PJM Interconnection power auction results that showed a dramatic 800 percent increase in costs. The recent auction revealed that the cost of electricity in the PJM region—including New Jersey—will soar to $14.7 billion for the 2025/2026 delivery year, a significant jump from $2.2 billion that was announced from the previous auction in February 2023.

“Phil Murphy’s years of political meddling in our energy systems is now playing a central role in skyrocketing electric bills with the risk of more blackouts on the horizon for New Jersey. Last week’s 800 percent increase in power grid pricing is a stark reminder of how already struggling New Jersey residents will always get stuck with the bill for the Democrats’ bad policy decisions. These are real issues of supply and demand that impact all of us,” said Sen. Bucco. “The Governor needs to stop listening to the extreme wing of his party and start listening to power grid engineers, energy experts, and economists: we need more reliable energy infrastructure, not fairytales and bumper sticker slogans.”

Senator Bucco has consistently warned that these higher costs will inevitably impact consumers by way of increased energy bills for households and businesses throughout New Jersey in addition to the already skyrocketing energy costs Garden State residents are experiencing. Bucco continues to question Governor Murphy’s Energy Master Plan (EMP) as the Governor pursues his push for complete electrification that could exacerbate the situation.  He has continually called for a reevaluation of the state’s energy policies, emphasizing the need for a cost analysis of the EMP.

“Governor Murphy’s push to deprioritize natural gas as a reliable low-carbon fuel source for heat and half of New Jersey’s electricity, and enforce widespread electrification are all contributing to these rising costs,” said Bucco. “Time is up. It’s been years with no serious assessment about the full impact of his extreme energy agenda. We must ensure that our energy strategy is in the best interest of New Jersey residents when it comes to reliability, affordability, and a clean environment – clearly his plan is failing.”

According to E&E News by Politico, coal and natural gas generation is shutting down too quickly and new wind and solar projects can’t get approved fast enough inside PJM, the power market and transmission operator serving 65 million people in a 13-state region.

Under the Murphy Administration, numerous privately-funded, federally-approved and PJM-backed natural gas energy infrastructure projects have been delayed and denied. Offshore wind-projects heralded by the Administration meanwhile have required legislative bailouts and were canceled due to exploding costs to construct them. Recent attempts to mandate building electrification – despite its higher carbon emission footprint – would’ve seen 4-5-time multiplier in costs for businesses, schools, and large commercial buildings.