With energy bill hikes approaching, Sweeney says he would target grid operator as governor

Updated at 5:20 p.m.

After news broke that rising electricity costs could increase energy bills by $25 a month this summer, former Senate President Steve Sweeney said he would target a regional energy company if he were elected governor. 

New Jerseyans faced high energy bills last summer, so much so that state legislators held a hearing to determine next steps. This summer’s energy increase was announced after a Monday electricity auction was more expensive than expected.

Sweeney accused PJM Interconnection—the company operating the electric grid for New Jersey and 12 other states—of market manipulation, lack of transparency, and of being an obstacle to the state’s renewable energy goals. The former legislator said he would sue PJM in a filing similar to the state of Pennsylvania’s complaint against PJM.

Pennsylvania and PJM settled the suit late last month; a release from Gov. Josh Shapiro’s office said the settlement would lead to $21 billion in savings for customers over the next two years—including customers in New Jersey.

“As the next Governor of New Jersey, I am committed to upholding the rights of our residents and ensuring that they have access to affordable, reliable, and clean energy,” Sweeney said in the release. “We must take a definitive stand against practices that unfairly burden our consumers and hinder our state’s energy goals.”

Gov. Phil Murphy applauded the settlement between Pennsylvania and PJM last month. Murphy signed onto a letter that several governors sent to PJM in addition to Shapiro’s lawsuit.

“I am pleased that PJM did the right thing by finding a path forward that will save consumers billions of dollars on their energy bills,” Murphy said in a release last month. “New Jersey will continue to advocate for affordability on behalf of consumers and work with our partner states to hold PJM accountable for unconscionable and unnecessary price hikes that hurt families and businesses. This is the beginning of a long road to common sense reforms.”

Sweeney is seeking the Democratic nomination for governor.

Cost-of-living is expected to be a top issue in voters’ minds when they enter voting booths this year.

Christine Guhl-Sadovy, the president of the Board of Public Utilities, said increases in demand and decreases in supply contributed to the higher prices, according to the New Jersey Monitor.

Pennsylvania’s lawsuit against PJM targeted what it deemed flaws in the company’s electricity auction design.

Sweeney said PJM has placed “undue financial stress” on customers and the state’s utility companies.

“New Jerseyans deserve a robust energy market that reflects their needs and priorities, and we must hold organizations like PJM accountable,” Sweeney said. “This legal action is a necessary step to ensure transparency and accountability within our energy grid, fostering a more competitive market that ultimately benefits all consumers.”