Electric rates could rise again for New Jersey residents

⚡ Power auction sets rates for upcoming year
⚡ Electric rates could rise another 5%
⚡ Republicans and Democrats blame each other

New Jersey residents and business already stung by a 20% increase in the cost of electricity will have to brace for even bigger bills in 2026.

The regional power grid known as PJM announced the results of this year's capacity auction on Tuesday. The auction is held to determine how much energy power plants will generate and what the wholesale cost of purchasing that power and distributing along the grid that connects to our homes and businesses.

PJM Executive Vice President of Market Services and Strategy Stu Bresler says consumers could expect "an increase of 1.5%–5% in customers’ bills next year."

That would be on top of this year's shocking increase that was approved by Gov. Phil Murphy's appointed state energy regulators.

Despite those approvals from the Murphy loyalists at the Board of Public Utilities, Murphy and Democrats have sought to blame PJM for not keeping up with the demands for power.

Another round of blame-storming

Facing potential voter wrath in November over rising utility rates, Democratic state lawmakers were quick to blame PJM.

"Here we go again," lamented Sen. John Burzichelli, D-Gloucester. "Another failed energy auction that will result in another increase in utility bills for New Jersey residents."

Burzichelli and fellow Democrats have sought to shift blame for years of energy policies under Murphy that focuses on so-called 'clean' energy without a clear path to replacing generating capacity from other sources such as coal, natural gas and nuclear.

Senate Minority Leader Anthony Bucco, R-Morris, blamed "Trenton Democrats’ failed energy agenda" for rising prices.

"Instead of pursuing a balanced, affordable, and reliable energy strategy, Trenton Democrats catered to the far-left wing of their party with unrealistic mandates and politically driven policies that ignore basic energy economics," Bucco said in a statement. "Now, ratepayers will see no relief for the 2026-2027 delivery year."

Will electric rates go up again?

It depends.

There are several factors that will determine this.

There is no question the cost of electricity is rising. PJM's Bresler told reporters, "It depends on the jurisdiction and the existing rates. That's why we have a range."

PSE&G officials were quick to say they anticipated their rates remaining stable for 2026. "If other supply-related costs remain roughly the same, such as the cost of energy, we anticipate a near flat impact on customers’ electric bills effective June 1, 2026," the company said in a statement.

New Jersey will also have a new governor in 2026. Both main candidates, Republican Jack Ciattarelli and Democrat Mikie Sherrill, have spoken out about higher energy costs. The new governor will have an opportunity to reshape the BPU and bring in their own regulators to try and keep a lid on rising costs.

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