Gov. Phil Murphy announced the state’s most aggressive response yet to rising utility costs, saying Thursday that officials will give households across the state at least $100 to offset the spike in energy costs that went into effect this month.
Flanked by Democratic legislators in Newark, the governor announced the administration will give $100 in electricity credits to households across the state, while low-to-moderate income households could receive up to $250. The credits would be spread across bills from July to December.
Democrats have pursued legislation and other actions to stifle the jump in costs since February, when the results of an electricity auction showed prices were set to increase. The issue is especially potent in an election year, as Democrats seek to elect a new governor and the entire Assembly is up for re-election.
“As households across New Jersey begin to crank up the air conditioning and plug in their fans to stay cool in the summer heat, we know there is one concern that is top of mind for many, if not most, the rising cost of energy,” Murphy said during the press conference. “So today, I’m proud to announce that starting next month, our administration will begin providing direct economic relief to the people of New Jersey to lower the cost of your monthly energy bill altogether. We’re going to invest more than $430 million into reducing the cost of every New Jerseyan’s monthly energy bill, with even more relief for our state’s middle- and low-income households.”
Republicans, who have gone on the offensive in light of the rate increase, have labeled the credits an election-year gimmick.
“Today’s announcement from the Governor is just another band aid,” Senate Republican Leader Anthony Bucco said in a release. “Whether it’s the deferral of the energy cost increase or this credit on your bill, the fact remains it doesn’t fix the overarching problem and it certainly doesn’t go far enough to help the families and small businesses already struggling to afford their utility bills. It simply delays the pain to avoid political fallout in an election year.”
Assemblyman Michael Torrissi (R-Hammonton), a member of the Republican Assembly Energy Affordability Task Force formed by GOP Leader John DiMaio last month, expressed similar doubts.
“This is smoke and mirrors,” Torrissi said in a release. “The only reason they have money to hand out is because they’ve been quietly stuffing utility bills with hidden charges for years. Now, right before an election, they want credit for giving a little of it back.”
Murphy agrees the relief is only a short-term fix — he said PJM Interconnection, the firm which operates the power grid for New Jersey and a dozen other states, must act to lower prices.
“Let me state the obvious,” Murphy said. “This new form of direct economic relief is a short-term solution. In order to stabilize household energy costs in the long term, PJM must take swift and far-reaching actions to meet growing energy demand.”
Democrats have focused their ire on PJM, arguing the power-grid operator hasn’t effectively added power sources to the grid.
Republicans and PJM, meanwhile, say Democratic lawmakers and the Board of Public Utilities—the state’s energy regulatory board—are to blame. PJM leaders have said they’ve warned about a tightening supply/demand balance for two years, but stakeholders didn’t heed the warnings until prices rose in the most recent energy capacity auction.
Former Senate President Steve Sweeney, a Democratic candidate for governor, said the temporary relief is a strong step, but must be followed with aggressive energy policy.
“I am encouraged by Governor Murphy’s announcement this afternoon as a step in the right direction, but more action is needed to address long-term issues,” he said in a release. “We must embrace all forms of energy – wind, solar, nuclear, gas, hydrogen, and more – so that New Jersey can reclaim its rightful position as an energy exporter and industry leader.”
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