New Jersey Democrats continue to rail against its power grid operator for soaring electricity prices, though the state’s aggressive green energy mandates have helped drive up costs amid a potential looming energy crisis.
Democratic New Jersey Gov. Phil Murphy signed two bills into law Friday that call for more transparency and accountability from the state’s grid operator, PJM Interconnection, arguing that it is responsible for soaring energy costs in the state. New Jersey’s electricity costs skyrocketed around 20% this year, though they have been on the rise for years as the state has shuddered all its coal plants and Democratic leadership has pursued a green energy transition.
“We understand the political motive to shift blame for high electricity bills, but the fact remains: PJM operates as a not-for-profit that plans the power grid and administers federally regulated wholesale electricity markets,” a spokesperson for PJM told the Daily Caller News Foundation. “Pointing fingers will not solve the supply-and-demand realities driving higher prices for consumers in New Jersey, including challenges that stem from failed policies. Our focus remains on working toward real solutions, because New Jerseyans deserve nothing less.”
New Jersey has aggressive green energy targets, aiming for a grid powered by a 50% green energy portfolio by 2030, with Murphy setting a goal of 100% clean electricity by 2035. The state is a net importer of electricity, meaning that it must use energy from other states, though electricity rates and grid instability have increased along the East Coast for years as well.
The Garden State retired all of its coal plants, shuddering its final two in 2022, which climate activists and Murphy celebrated.
“A world without coal is a cleaner, safer world,” Murphy said at the time, according to a local news outlet. “And when you’re the most densely populated state in America, as we are, that is doubly true.”
Though New Jersey has recently made an effort to increase generation from nuclear power and natural gas, the state has historically supported several expensive green energy projects that have been found to raise utility costs, including offshore wind farms like Atlantic Shores South. The Trump administration pulled the permit for one of New Jersey’s massive pending offshore wind projects in March, which has thrown a wrench in the state’s plans to significantly expand its offshore wind generation capacity by the 2030s.
President Donald Trump also railed against New Jersey’s energy policies Tuesday on Truth Social, writing that “stupid and ugly windmills are killing New Jersey. Energy prices up 28% this year, and not enough electricity to take care of state. Stop the windmills!”
Grid operators, watchdogs and energy experts have also long cautioned that the Biden-era green energy push could undermine grid reliability and raise electricity costs.
“These bills complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans’ skyrocketing electricity bills and a lack of new energy generation,” Murphy said on Friday when signing the bills. “We are committed to creating a system that is fairer and more transparent for customers and the states that represent them – a necessary change from the opaque practices that have, for too long, defined PJM.”
Several New Jersey Democrats celebrated Murphy signing the bills into law and many other Democratic governors in the region have also sought to blame PJM for soaring power bills and a potential reliability crisis, though their states have adopted similar green energy mandates and have also moved to phase out coal plants.
This #EarthDay, we are proud to continue leading the way to a clean energy future in New Jersey:
100% clean electricity by 2035
☀️Expanding solar energy to reduce utility bills
— Governor Phil Murphy (@GovMurphy) April 22, 2025
100% clean electricity by 2035
80% emissions reduction by 2050
️ Protecting over 30% of open space across NJ “This bill will ensure PJM voters take responsibility for their decisions, increasing the public’s confidence in the decisions being made,” said Democratic New Jersey Assemblyman Robert Karabinchak.
Democratic New Jersey state Sen. John Burzichelli argued that PJM’s “energy auction … is the principle cause for the spike in utility bills [and] is clearly broken and in desperate need of reform.” New Jersey Democrats blame PJM’s annual power market auction for higher utility costs — as prices did surge after the 2024 auction — though PJM attributed the spike to climbing demand and tightening supply, according to Reuters.
PJM oversees the regional power grid spanning all or portions of 13 states, along with Washington, D.C. While PJM plays a central role in bringing new power plants online, the operator remains subject to regulatory oversight. The grid operator is mindful of the governors’ concerns, though it must operate within the bounds of federal and state regulation, a representative told The New York Times in June.
“PJM is trying to keep the lights on,” Amy Cooke, co-founder and president of Always on Energy Research and the director of the Energy and Environmental Policy Center told the DCNF previously. “These governors passed unrealistic goals of these net-zero clean grids, and now they don’t want to own their bad policy. … Their fantasy is meeting reality.”
Several other blue states have similarly aggressive green energy mandates and net-zero targets like California and Michigan that are also staring down potential energy crises, even as the Trump administration works to boost American energy production through conventional and reliable power resources like coal and nuclear. Notably, some New York Democratic officials recently admitted that the state’s green energy goals may not be achievable on the current timeline due to cost concerns.
Climbing energy demand is a national trend as the expectation for power-hungry artificial intelligence (AI) data centers grows, and as energy infrastructure ages and is phased out; electricity supply is tightening in several states across the U.S.
Murphy’s office did not respond to the DCNF’s multiple requests for comment.
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