New Jersey Governor Signs Orders to Freeze Rate Hikes, Fast-Track New Power Supply

New Jersey Governor Mikie Sherrill on Jan. 20 signed two executive orders aimed at immediate utility bill relief and accelerated in-state power development, positioning the action as an emergency response to escalating electricity costs and affordability pressure.

The first order directs near-term ratepayer protections ahead of electricity bill increases expected in June and ties the action to rising regional capacity costs at PJM Interconnection. The order uses existing state funding to offset upcoming bill impacts and authorizes the New Jersey Board of Public Utilities to pause or modify utility actions that could further increase customer bills. The directive also requires the regulator to review utility business models to better align incentives with cost control and customer relief, signaling tighter scrutiny of utility spending and rate impacts.

The second order declares a state of emergency under the Disaster Control Act and launches expedited state programs intended to add significant new in-state generation capacity to put downward pressure on electricity prices. The directive accelerates development pathways for thousands of megawatts of new solar and battery storage capacity in the near term, while directing agencies to identify permitting reforms that reduce approval timelines and non-hardware project costs. It also targets interconnection delays that can slow project completion and increase system costs. In addition, the order establishes a nuclear power task force to position New Jersey for new nuclear generation development as a longer-term strategy to strengthen firm capacity and moderate electricity costs.

A central element of the order is managing emerging load growth risks. Governor Sherrill directed the regulator to address artificial intelligence-driven ghost loads by requiring utilities to report large electricity service requests from data centers. The measure aims to improve visibility into demand that may not materialize but can still influence grid planning and cost allocation.