Sherrill signs energy bills, utility relief package

The basics:

• $25 electric bill credit for all 3.6M New Jersey ratepayers due in August
• Eligible low-income households receive an additional $150 in relief
• New laws increase utility oversight, repeal the PJM ROE adder
• Data Center Fair Share Act shifts infrastructure costs to large data centers

Gov. Mikie Sherrill announced utility bill relief July 7 for every New Jersey ratepayer while signing three energy-related bills. The legislation aims to lower long-term electricity costs, strengthen oversight of utility spending and ensure large data centers pay a greater share of energy infrastructure costs.

Speaking during an event in Woodstown, Salem County, Sherrill said, “All 3.6 million New Jersey ratepayers will get a $25 credit towards their electric bill this August. That’s a $90 million investment in affordability.” She added, “Lower-income families qualify for another $150 in relief, giving them much-needed breathing room before the highest bills of the summer arrive.

“And I paired that immediate relief with legislative action in the long term. Today, I’m signing three bills to help us take control of our energy future and save you money.”

According to the administration, combined with other energy initiatives launched during Sherrill’s first six months in office, the measures are expected to save New Jersey ratepayers more than $1 billion annually, based on estimates from Synapse Energy Economics.

The governor said the new laws intend to address rising utility costs while improving the state’s long-term energy infrastructure.

“I made a commitment to rein in energy costs, and today we are delivering on that commitment,” said Sherrill. “For too long, New Jersey families have paid the price for poor oversight, outdated policies, and rising demand on our electric grid by unchecked actors,” Sherrill said.

Bringing it home

The event took place at the Salem County home of Eileen Bailey. The retired nurse lives on a fixed income and is also the mother of Assemblyman Dave Bailey, D-3rd District, who sponsored Assembly Bill 796, the Data Center Fair Share Act.

“If you had told me three years ago, when I was first elected, that in the near distant future the governor of the state of New Jersey, several of my mates in the Assembly and the Senate, and all these distinguished guests would be standing on my mom’s front porch, there is no way that I would have believed you,” said Bailey.

The lawmaker said the legislation reflects a shared commitment to protecting New Jersey’s most vulnerable residents from rising energy costs.

Speaking from Eileen Bailey’s home, Sherrill framed the announcement around the impact of rising utility bills on households across the state. “As governor, my focus isn’t on the board room or the back room, it’s in the kitchen table at homes like this,” she said. “It’s on people like Eileen doing everything they can to stay above water, even as the water line keeps rising.”

From day one, I said I was going to take on kitchen table issues of affordability – to help save New Jerseyans like Eileen money.

That is why I signed legislation to strengthen our grid, drive down costs, and help us take care of our energy future. pic.twitter.com/2om344CTZo

— Governor Mikie Sherrill (@GovSherrillNJ) July 9, 2026

The legislation signed July 7 includes:

• Repeal ROE Adder (S1673/A2757)
  Eliminates an incentive that allowed utilities to earn additional returns simply for participating in regional grid operator PJM. The administration says the change could save ratepayers up to $60 million annually.
• Advanced Grid Technologies Act (S4411/A5188)
  Requires greater state oversight before utilities undertake major supplemental transmission projects, while also creating a faster approval process for those utilizing advanced grid technologies designed to improve efficiency and lower costs.
• Data Center Fair Share Act (S731/A796)
  Creates a separate rate class for large data centers. The move aims to ensure these users pay for the energy infrastructure they require, rather than shifting those costs to residential and small-business customers. The law also requires data centers to reduce electricity usage during periods of grid stress before impacts to residential customers.

The administration highlighted several recent energy initiatives, such as renewing the Summer Termination Program that protects vulnerable residents from utility shutoffs during extreme heat. It also pointed to approvals for 12 new community solar projects, which are expected to generate enough electricity to power roughly 45,000 homes.

Short- and long-term solutions

Ben Hertz-Shargel, the newly confirmed president of the New Jersey Board of Public Utilities, said the legislation complements broader efforts to modernize the state’s electric system as well as advances the administration’s energy affordability agenda.

“The bills being signed today by the governor continue to deliver on that commitment,” said Hertz-Shargel. “The board stands ready to implement this legislation, strengthen our grid, and deliver real cost savings to New Jersey ratepayers.”

He added that NJBPU will also advance the governor’s executive orders by moving forward with a utility business model study and a virtual power plant program. He called the utility review “one of the most consequential energy regulatory reviews the state has taken in a generation.”

The board stands ready to implement this legislation, strengthen our grid, and deliver real cost savings to New Jersey ratepayers.
—Ben Hertz-Shargel, president, NJBPU

According to Hertz-Shargel, the work will modernize the electric grid, improve reliability, and better align utility regulation with affordability and accountability.

Assembly Speaker Craig Coughlin, D-19th District, said the package combines immediate relief with longer-term reforms.

“The Assembly has prioritized legislation that will hold the line on energy costs for families and businesses while also making smart investments that will help us meet the rising demand,” said Coughlin. “I’m proud of our continued focus on both immediate and long-term solutions to help bring energy costs down and ensure ratepayers aren’t overburdened by utility expenses.”