Announcement Includes over $430 Million in Direct Relief to Every Household 

TRENTON - Governor Phil Murphy, Senate President Nick Scutari, and Assembly Speaker Craig Coughlin today announced over $430 million in direct relief to lower the cost of energy bills. This comes in anticipation of the utility rate increase that took effect on June 1, 2025, as New Jersey ratepayers face record high wholesale electric prices which will hit customers with bills 20% higher than they were one year ago.  

All 3.9 million ratepayers in New Jersey will receive at least $100 in direct relief, while eligible low-to-moderate income (LMI) New Jerseyans will see at least $150 more deducted from their energy bills.

These credits are funded by the Clean Energy Fund, the Board of Public Utilities’ allocation of Regional Greenhouse Gas Initiative (RGGI) proceeds, and the Solar Alternative Compliance Payment account.

“Today, we are coming together to provide critical economic relief to the people of New Jersey by directly lowering the cost of their monthly energy bills,” said Governor Murphy. “But let me be clear: this is a short-term solution for the people of our state being battered by rising energy costs. Moving forward, we are going to work alongside BPU President Christine Guhl-Sadovy and our legislative partners to hold PJM accountable for the untenable and unconscionable costs they have forced on our state’s residents. Together, we are going to explore every possible avenue for lowering the cost of energy in the long term to make our state more affordable for more families.”

“The upcoming spike in utility bills imposed on New Jersey residents is unaffordable and unfair,” said Senate President Nick Scutari. “PJM conducted a deeply flawed energy auction, and its continued incompetence is costing the State. These rate-relief credits will bring more immediate relief to consumers, putting money into their pockets to help offset utility costs. We can’t allow New Jerseyans to be left to themselves to shoulder the burden of PJM’s mismanagement.”

“As we continue our efforts in the Legislature to ease the burden of utility rate hikes for New Jerseyans, I am encouraged to see Governor Murphy announce these steps to deliver meaningful and immediate relief,” said Assembly Speaker Craig Coughlin. “The return of the REAP program will provide our most vulnerable residents with sustained monthly support, and through the proposed universal credit, every ratepayer, regardless of income, would see relief. I thank my legislative colleagues for demanding relief for our residential ratepayers and commend the Governor and BPU for using the tools at our disposal to meet this moment with purposeful action. No one should have to choose between cooling their homes in the summer and paying for groceries or medication, and that’s why we will continue our legislative focus on keeping energy costs affordable for the long-term. We’ve passed bills that will strengthen oversight, improve accountability and protect New Jersey residents from unfair energy prices while also moving forward with an all-of-the above approach toward increased energy production in the state. Generating our own energy will bring down costs for residents and businesses alike, as well as lead to the creation of good-paying jobs. I expect our state’s electric utilities to be partners in helping us meet these challenges.”

“This will provide direct relief to ratepayers to help offset the costly burden of a sudden spike in utility bills imposed on them by a mismanaged PJM power generation auction,” said Senator John Burzichelli. “This assistance will be a welcomed relief for all ratepayers, but it will be especially helpful for working families and low-income residents who are already struggling to make ends meet. This, however, is not a permanent solution. We must continue to be aggressive in fighting for reforms to the PJM system that caused this crisis in energy costs. We need an energy market that operates effectively, serves the needs of ratepayers, and makes affordability the priority.”   

“Families across New Jersey are already feeling squeezed by the rising cost of living, and the energy rate hikes will only make the issue of affordability worse,” said Senator John McKeon. “We cannot allow our residents to shoulder this burden alone. Governor Murphy’s plan to provide millions in direct relief to ratepayers will ensure that no one has to choose between putting food on the table and keeping the lights or air conditioning on. I look forward to working with the Board of Public Utilities to get these credits into the hands of the public as soon as possible.”

“We know that energy bills can spike in the summer, and families need relief now,” said Assemblywoman Eliana Pintor Marin. “The Assembly remains focused on keeping New Jersey affordable. This is the kind of targeted relief that helps while we continue building long-term, sustainable solutions. I appreciate Governor Murphy for putting forward this plan, and I look forward to working together to drive down utility costs.”

“As someone who represents communities in South Jersey, I’ve seen firsthand how devastating unpredictable energy costs can be for working families, seniors, and small businesses,” said Assemblyman Dan Hutchison. “While we continue working toward long-term solutions, I am proud to support this effort to deliver immediate, direct relief through programs like REAP and the proposed Universal Credit.”

“Today’s announcement demonstrates what good governance is all about – delivering real results to those who call New Jersey home, and I'm proud of the work the NJBPU has done to make this historic rate relief announcement a reality,” said NJBPU President Christine Guhl-Sadovy. “Under Governor Murphy’s leadership, with support from Senate President Scutari and Speaker Coughlin, we will continue to make affordability a priority for New Jersey utility customers.”

As demand for electricity is on the rise, regional grid operator PJM Interconnection has failed to plan for increased energy capacity and has failed to bring new, renewable energy projects online.

In recent months, New Jersey has led the way in advocating for a solution to the cost crisis faced by multiple states that are members of the PJM region. In April, Governor Murphy called on the Federal Energy Regulatory Commission (FERC) to investigate whether market manipulation led to higher capacity auction prices.

The Governor also urged PJM to finally provide long-overdue approvals for new, clean sources of energy, such as solar power, that would help expand New Jersey’s supply of energy. This year New Jersey exceeded 5 gigawatts of installed solar capacity for the first time, enough energy to power 750,000 homes. PJM, however, has delayed the process for allowing new sources of clean, reliable energy to be added to the State’s grid.