Sherrill signs energy package, announces utility bill credits for 3.6 million customers

Gov. Mikie Sherrill on Tuesday signed a three-bill package aimed at lowering electricity costs, increasing oversight of utility spending, and requiring large data centers to shoulder more of the costs they place on the electric grid, while also announcing immediate bill credits for millions of New Jersey households.

Reducing electricity costs was one of the principal promises Sherrill made during her 2025 campaign for governor.

Her office said the combined impact of the legislation and other energy initiatives undertaken during Sherrill’s first six months in office will save New Jersey ratepayers more than $1 billion annually, citing an analysis by Synapse Energy Economics conducted for Gov. Phil Murphy last year.

Sherrill also announced a $25 Residential Universal Bill Credit that will be applied to all 3.6 million New Jersey electric customers.  Lower- and moderate-income households will receive an additional $150 credit through the Residential Energy Assistance Payment program as summer electricity demand increases.

“I made a commitment to rein in energy costs, and today we are delivering on that commitment,” Sherrill stated. “For too long, New Jersey families have paid the price for poor oversight, outdated policies, and rising demand on our electric grid by unchecked actors.  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.”

One measure eliminates an incentive that allowed utilities participating in the regional PJM electricity market to receive a higher return on equity, a cost ultimately borne by ratepayers.  A second bill expands state oversight of major transmission infrastructure projects by requiring utility companies to obtain approval before undertaking supplemental grid investments.  The Sherrill administration said such projects accounted for nearly $14.7 billion in New Jersey transmission spending since 2008.

The third measure creates a separate electric rate class for large data centers, requiring them to pay for the infrastructure needed to serve their facilities rather than shifting those costs onto residential and small-business customers.  The legislation also encourages data centers to bring additional clean energy onto the grid and reduce consumption during periods of peak demand.

Sherrill also highlighted recent actions by the New Jersey Board of Public Utilities, including renewing the Summer Termination Program to protect vulnerable residents from utility shutoffs during extreme heat and approving 12 new solar projects expected to generate enough electricity to power about 45,000 homes.

The bill signings won the praise of Assembly Speaker Craig Coughlin, who said he was “proud of our continued focus on both immediate and long-term solutions to help bring energy costs down and ensure ratepayers aren’t overburdened by utility expenses.”

“The Assembly has prioritized legislation that will hold the line on energy costs for families and businesses while also making smart investments that will help us meet the rising demand,” he said.