Mikie Sherrill won her election by a landslide against Jack Ciattarelli. Many thought Sherrill would have lost the election, but thousands of voters mobilized to get him elected. With Sherrill now in office, many are skeptical that she will do anything. During her campaign, she promised many things. Now she may be delivering on them with the promise of day-one frozen utility costs, but they do not kick in right away. There is a delay, but progress has been made for struggling New Jerseyans.
One of the major executive orders, Executive Order One, aims to hold regional grid operators, PJM, and old utilities accountable for preventing rates from continuing to climb. PJM (Pennsylvania-Jersey-Maryland) Interconnection is the independent organization that manages the bulk electric grid and wholesale electricity markets for New Jersey and 13 other states plus D.C., ensuring reliable power flow, planning future needs, and coordinating generation to supply local utilities, which directly impacts consumer costs and supply. PJM sets electricity rates through competitive auctions for capacity (future supply) and real-time energy, using a clearing price system where the most expensive bid often sets the rate, ensuring reliability by paying generators to be available; consumers pay based on their peak usage (Peak Load Contribution) and the market-clearing prices for energy and capacity. Years in advance, the rates are decided based on projected usage. This has been a plan for years to hike prices, so the question stands: why have our past politicians not taken action to ensure that New Jersey residents would not suffer?
The executive orders use funds to offset electricity bill increases and states
“WHEREAS, the December 2025 PJM auction would have seen
capacity prices climb 60 percent higher, if not for a temporary
price cap instituted as a result of legal action against PJM; and
WHEREAS, electricity rates in New Jersey are among the highest
in the continental United States and in the Mid-Atlantic region,
and during the summer of 2025, New Jersey experienced some of the
The highest electricity price increases are in all states that participate
in the PJM regional power market.”
As you can see, Jersey is struggling with energy costs, and residents need relief now. You might be wondering how this executive order aims to alleviate those costs. Let’s lay out the plan and how it could affect New Jersey residents. Residential Universal Bill Credits (RUBCs): The Board of Public Utilities (BPU) is directed to issue credits to residential customers to offset expected supply cost increases in 2026. These credits are intended to reach customers no later than July 1, 2026. Use of RGGI Proceeds: The state will explore using funds from the Regional Greenhouse Gas Initiative (RGGI) specifically for ratepayer relief, particularly for low- and middle-income residents. Societal Benefits Charge (SBC) Review: The BPU is tasked with reviewing and, if necessary, reducing the SBC—a surcharge on every electric bill—without compromising essential assistance programs. Clean Energy Program “True-Up”: The order directs a revision of the Clean Energy Program budget to identify unspent funds (”true-up”) and redirect them toward direct ratepayer relief and energy efficiency programs for qualifying households. Within 180 days, the BPU must conduct a survey assessing the rising costs of utilities and how to address them.
The history of public utilities in New Jersey has evolved over the years. Before the 1900s, utilities were controlled by municipal contracts and private companies, and became a statewide initiative by Governor Woodrow Wilson. In 1907, the state created the Board of Railroad Commissioners. In 1910, the name was changed to the Board of Public Utility Commissioners, and its power was expanded to cover gas, electric, water, sewer, and even telephone/telegraph services. This was New Jersey’s first true “consumer protection” agency, designed to ensure safe and reliable service at “just and reasonable” rates. From 1911 until about 1999, monopolies began taking hold of utilities, leading to diverse regulatory practices and legislative lobbying that further harmed residents. For most of the 20th century, utilities like PSE&G and Jersey Central Power & Light (JCP&L) operated as “vertically integrated” monopolies. This meant one company owned everything: the power plants (generation), the large high-voltage lines (transmission), and the local wires to your house (distribution).
Many oppose Sherrill’s initiatives on renewable energy, most notably the protest against offshore wind farms. While these protests began before Sherrill took office, notably in 2023 with the “Save the whales” protest in Point Pleasant, NJ, where thousands of people gathered on National Whale Day to oppose the expansion and development of offshore wind farms. Notably, the state has lost multiple vendors due to protests and regulations that have hindered profit. At the end of the day, for corporations, it is always the bottom line and not so much the positive social impact of doing good for communities. Following a protest in March of 2023, dozens gathered in Trenton, the state capital, to deliver a petition with 500k signatures calling for a halt to the development of offshore wind farms. Since then, multiple movements and protests have occurred to stop the development. While these states proceed with development, others urge that it may lower residents’ costs. In other parts of the country, offshore wind farms have proven successful in helping reduce the burden on dirty energy sources like coal and natural gas. Advocates have argued that the development of offshore wind farms has caused whale beachings, but marine biologists have not been able to prove this claim.
Mikie Sherrill has an uphill battle ahead with rising development costs and a burden on taxpayers. In her campaign, a quote, “It will cost an arm and a leg, but if you are a good person, you will do it,” was taken out of context and repeatedly used by the Ciattarelli campaign. What could come from a divided state, and how can this all be done in a way that is equitable for taxpayers? Taxpayers are going to have to think about change collectively, rather than individually.
New Jersey first established its framework for increasing renewable energy in 1999 with the passage of the Electric Discount and Energy Competition Act (EDECA). It introduced “Class I” (solar, wind, etc.) and “Class II” (hydropower, resource recovery) designations. With advances in technology, many New Jersey residents have benefited from tax credits for installing solar panels on their homes. In New Jersey, installing solar panels adds between 32k and 35k to home value, not only saving on costs but also allowing many residents to receive refunds for generating excess electricity. Most New Jersey residents qualify for these programs. Still, substantial investment is often required, and strict criteria must be met, such as optimal roof orientation and the ability of a room to support the weight of the panels. Acceleration took hold in New Jersey between 2010 and 2012, with thousands jumping on the bandwagon and investing in solar panels as energy costs began to rise. The Solar Act of 2012 helped accelerate the requirement that a percentage of the state’s electricity be generated by solar energy.
Solar panels are not new; about 140 years ago, they began to take shape, and over time, they have evolved with technology. Edmond Becquer discovered the photovoltaic effect, demonstrating that energy can be generated from sunlight. Although panels were not invented at this time, the discovery sparked research into the phenomenon. Charles Fritts created the first solar cell panel in 1883. As you can tell, these discoveries of solar energy are not new and have been around for some time. Now, modern panels can generate more power for a home than traditional power, helping alleviate stress on the electrical system. If more homes in New Jersey had solar power, the cost of energy would decrease due to excess energy being supplied and reduced management of the plants that produce the power, benefiting all citizens of the state. The “ancestor” of the blue silicon panels we see today was developed at Bell Labs by Daryl Chapin, Calvin Fuller, and Gerald Pearson. Due to the exponential cost, these panels were only used to power equipment in space. Now, with modern investment and optimization, even with the initial overhead cost, the panels pay for themselves in about ten years. In the 1970s, Dr. Elliot Berma helped shape the more affordable options, allowing homeowners to take advantage of such technology. Since the 2000s, the cost of panels has decreased by nearly 80% due to new materials and the widespread availability of raw materials.
New Jersey makes solar affordable in a few ways. Successor Solar Incentive (SuSI) Program: This is a performance-based program in which you earn SREC-II certificates for every 1,000 kWh of electricity your panels produce. In 2026, residential owners typically receive $85 per certificate for 15 years. Also, solar equipment is 100% exempt from sales tax. The executive order of Mikie Sherrill doesn’t focus mostly on renewable energy, but many can argue that it is a step in the right direction. The effects of social energy may benefit from ownership by citizens and democratic control as the long-term goal, but when will the government act in accordance with residents’ interests? The executive order has a few critiques: it only freezes rate hikes and doesn’t focus on lowering costs, as the plan was advertised during Sherrill’s campaign. The plans do not take effects for a few months and millions of residents will still struggle due to the freeze of high rates which is the issue with the cost of energy in New Jersey.
I received my gas bill this month and was shocked to find that it was nearly $500 and the electric bill was close to $250. In early 2000s you could pay this amount in rent and have lower utility cost. Utilities are becoming the cost of rent and mortgages in the state and the outrage of residents are justified when so many people live paycheck to paycheck and are only one emergency or sickness away from financial ruin. We as New Jerseyians deserve change and reduction of cost to afford and continue living in the state we have called home for so long so what will the government actually do to combat the unsustainable cost of energy? Will we see change or will the promises just be that, promises that fail to make change.