New Jersey Electricity Customers Face Potential $20 Monthly Increase Due to Summer Supply Challenges
New Jersey electricity customers are facing higher bills soon, with potential increases of up to $20 monthly—roughly a 17% to 20% rise—due to increased electricity auction prices reflecting higher demand and limited supply. These price adjustments were authorized by the state’s Board of Public Utilities in February. PJM Interconnection, the grid operator for New Jersey and 12 other Mid-Atlantic states, recently released a summer 2025 forecast, highlighting potential supply challenges as summer approaches. While sufficient power is anticipated for typical demand, a hotter-than-average summer, as predicted by the National Weather Service, raises concerns. PJM expects peak energy use to reach approximately 154,000 megawatts, but warns that available generation capacity could be insufficient if demand surges to 166,000 megawatts. The highest recorded summer peak occurred nearly two decades ago in 2006, reaching 165,563 megawatts; last year's peak was about 152,700 megawatts, and the year prior, 147,000 megawatts. One megawatt is generally capable of powering around 800 homes. Aftab Khan, PJM’s executive vice president, emphasized the growing concern regarding resource availability to maintain grid reliability, urging all resources within PJM’s service area to be ready for potential calls to action. State Sen. Andrew Zwicker has publicly criticized PJM's performance, particularly regarding delays in connecting renewable energy projects to the grid, and has called for legislative action to pressure PJM to expedite these connections. PJM oversees the electric grid for a vast area, serving approximately 70 million residents from New Jersey to North Carolina and as far west as Illinois.
