New Jerseyans are facing an energy crisis. Families are seeing their electricity bills skyrocket, sometimes consuming nearly their entire monthly budgets just to keep the lights on or their homes heated. Yet too often, utility companies are allowed to operate without real accountability while customers shoulder the cost of inefficiency, mismanagement and corporate blunders.
As newly-elected Gov. Mikie Sherrill said, “Utility costs are out of control in New Jersey. Families are spending almost their entire budget just to pay the electric bill … It’s time for action, because people just can’t wait any longer. So on Day One as New Jersey’s new governor, I’m going to declare a State of Emergency on Utility Costs and freeze your utility rates, massively build out cheaper and cleaner power generation, and require more transparency from our utility companies.”
This is exactly the kind of decisive action our state needs. Utilities in New Jersey have a regulated monopoly over the poles and wires to deliver electricity to families. These costs show up in the transmission and delivery portions of utility bills. When these costs rise due to corporate greed or inefficient planning, ratepayers have no alternative provider and no way to escape the financial burden, leaving ratepayers paying for mistakes they didn’t cause.
The problem isn’t just high rates; it’s the lack of transparency and oversight that allows these increases to go unchecked. The state is beginning to respond. Former Gov. Phil Murphy signed legislation aimed at improving transparency and oversight of utility costs, including measures that require utilities to report more clearly on spending and infrastructure projects. These actions are a step in the right direction, but more accountability is needed to protect everyday New Jerseyans.
Families deserve to know what they are being charged and why. They deserve clear reporting from utility companies and assurances that funds are being used efficiently, responsibly and in the best interest of the public.
Every dollar spent inefficiently by a monopoly utility is a dollar taken from a family’s grocery bill, childcare costs, or other essential needs; burdens that fall hardest on seniors, low-income households and people on fixed incomes. Many are already forced to make “heat or eat” decisions in the winter months, a concern echoed by New Jersey AARP volunteers actively lobbying lawmakers for lower utility costs to protect older residents and other vulnerable populations. In a state as wealthy and innovative as New Jersey, this is unacceptable.
The upcoming legislative session is a critical moment. Lawmakers must hold utilities accountable and demand transparency, efficiency and fairness. This means freezing unjustified rate increases, scrutinizing utility budgets and ensuring that investments in the energy grid benefit consumers, not just corporate shareholders. Families should not have to subsidize inefficiency or reward poor corporate planning.
At the same time, utilities are using today’s rising energy costs as political cover to dismantle long-standing consumer protections. Faced with public anger over bills, utility companies are arguing that New Jersey should allow them to once again own and operate power plants. This move would reverse decades of reforms that deliberately separated electricity generation from monopoly utilities to prevent inflated rates and encourage competition.
Consumer advocates warn that utility-owned generation would reintroduce incentives for utility companies to overbuild, shift financial risk onto ratepayers and force families into paying for costly, long-term investments regardless of performance. Instead of competing in the energy market, utilities would be guaranteeing returns on massive capital projects and driving higher bills for customers. New Jersey moved away from monopoly-owned generation to protect consumers from exactly this kind of abuse, and lawmakers should not let today’s affordability crisis be exploited to undo those safeguards.
New Jersey can lead the way in showing that a modern, clean and reliable energy system can coexist with accountability and fairness. But that requires bold leadership from the governor and legislators alike, starting in 2026. Lawmakers must send a clear message to utilities: stay within your budget, spend wisely, and put customers first, or face real consequences.
Families in New Jersey cannot wait any longer. Rising energy costs are not just numbers on a bill; they are real-life hardships, stress and financial strain. The state must act decisively to protect its residents and ensure energy affordability, transparency and accountability.
