Temporary bill credits may not be enough to ease high utility costs in New Jersey over the long run, according to a new report. It says that keeping electricity affordable as demand climbs will likely require a reset of state energy policy.
The central argument is that clean energy goals and grid reliability should advance together, not in opposition.
Here's what to know
As ROI-NJ reported, the research and educational organization Garden State Initiative is urging New Jersey to move on from its Energy Master Plan and adopt a framework focused on affordability, reliability, and sustainability.
Policy analyst Anurag Bhat, who authored the report, said the big issue is strain on the state's power system, not simply the lack of temporary customer credits. The report stated that New Jersey imported over 20% of the electricity it used in 2024, making it reliant on neighboring suppliers when demand surged.
Any effort to reduce gas and nuclear generation, the report said, should wait until replacement resources can perform through peak summer and winter demand as well as grid stress that lasts several days. It noted that natural gas represented more than two-thirds of summer 2024 capacity and, together with nuclear, still made up most of New Jersey's dependable power.
"New Jersey families and businesses need more than temporary relief from rising electricity bills," Garden State Initiative President Audrey Lane said, according to ROI-NJ.
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More background
The report arrived as electricity systems across the country face a difficult balancing act. Demand is rising, consumers want lower bills, and states are also working to cut pollution and modernize the grid.
Shutting down reliable power plants before replacement resources are in place can tighten supply and drive electricity prices higher. That can increase household bills and also leave the system exposed during heat waves and cold snaps, when dependable power matters most.
The report also pointed to a gap between policy goals and real-world progress, saying Gov. Phil Murphy's administration's battery-storage goals were only about 5% completed, nowhere near enough to replace firm generation at scale.
According to ROI-NJ, mandates are not a sufficient strategy. It said New Jersey exported more electricity than it consumed in the mid-2000s but has become increasingly reliant on imports while power prices stay above the national average.
What's being done?
The report proposed a plan built around a "Preserve, Build, Prepare" model, per ROI-NJ. Under that approach, the state would keep existing dependable generation in service — including nuclear units, gas plants, and participation in PJM power markets — until new resources are online.
The "build" portion focuses on resources that can realistically be delivered at reasonable cost and connected with adequate transmission. In that framework, the main question is whether a resource can provide affordable reliability, not whether it belongs to a preferred category.
For the "prepare" phase, the report said New Jersey should get ready for cleaner firm-energy technologies by applying the same test to every option. Rather than choosing favorites in advance, policymakers would compare resources based on cost, dependability, environmental goals, and system outcomes, as ROI-NJ detailed.
The report showed a cleaner grid is achievable but only if the transition moves at a pace households and businesses can afford and the electric system can reliably support.
"New Jersey can pursue cleaner electricity while protecting affordability and reliability," Lane said. "That starts by ensuring new power supplies of all kinds are built and ready before dependable resources are retired."
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