Gov. Sherrill signs executive order to ‘freeze’ electric rates. Here's how it would work.
The executive order does ask the Board of Public Utilities to consider pausing the schedule for rate increases. If the rates still go up, the BPU will provide credits to counter the increase.
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Gov. Mikie Sherrill made campaign promises to keep rate increases out of New Jerseyan’s electric bills. She started the process on Tuesday during her inauguration event.
“I’m going to sign my first in a series of executive orders to declare a state of emergency on utility costs,” Sherrill said. “I will freeze rate hikes to finally provide families with real relief on their energy bill.”
But is it truly a rate “freeze?” The executive order does ask the Board of Public Utilities to consider pausing the schedule for rate increases. If the rates still go up, the BPU will provide credits to counter the increase.
This part of Sherrill’s plan might not end up looking much different than former Gov. Phil Murphy’s rate credits that went out last summer. Those were $100 for most households. They covered some, but not all, of the 20% rate hike.
PJM, the multistate power grid that New Jersey belongs to, is projecting a smaller increase of 1.5-5% this summer. Another $100 credit from the state could effectively wipe it out for customers, “freezing” their rate hikes.
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“I think that’s going to be kicking the can down the road,” said state Senate Republican Whip Mike Testa. “Eventually, those companies will be paid.”
Last year, Murphy claimed the credits were covered by sources like the state’s Clean Energy Fund and cost approximately $430 million.
But Sherrill’s second executive order, which fast-tracks energy generation in New Jersey, has some agreement across the aisle.
“We went from an energy exporter to an energy importer under Gov. Murphy,” Testa said. “We need to become an energy exporter again, so I’m happy that Governor Sherrill does want to up energy production in the state of New Jersey.”
The order mentions short-term solar and battery storage, plus a task force on longer-term nuclear projects.
A PSE&G spokesperson said in part that the company “appreciates Sherrill’s focus on addressing energy affordability,” adding that more than 40% of the state’s power is imported.
