New Jersey declares state of emergency as electric bills spiral out of control

The increase you seeon your electric bill is not a figment of your imagination or an isolated incident. While Residential utility bills increased by an average of six percent from 2024 to 2025 in the United States, but New Jersey is one of the states that has seen the largest increases.

New Jersey is already among the highest average household expenses in the country, but these electric bill increases have become a major concern for residents of The Garden State. From 2020 to 2025, NJ electricity bills have risen 55 percent; New Jersey is one of 13 states that have seen significant utility bill increases in recent years.

During the contentious 2025 New Jersey gubernatorial race, Democratic Candidate Mikie Sherrill made the cost-of-living expenses and rising electric bills one of her primary campaign talking points. Some political analysts believe that the former Congresswoman won the election in large part because of her focus on those types of issues.

New Governor Sherrill is already looking to "deliver" on her campaign promises

On her first day as New Jersey's 57th Governor, Mikie Sherrill signed two executive orders to stop the continuing rise of utility costs in the state. The "Rate Hike Freeze" order instructs the New Jersey Board of Public Utilities (BPU) to stop any "proceedings" that would allow utility companies to "seek approvals" for rate increases.

This executive order is a companion to the first State of Emergency signed by new Governor Sherrill. The goal is to create a simpler pathway to alternative energy sources that would offset utility costs.

This second executive order also instructs the NJBPU to require electric utility companies to report the impact of Artificial Intelligence Data Centers on energy grids. A report cited by CNBC says that AI Data Centers consume the level of electricity equivalent to "more than 800,000 homes", and this has been a major factor behind rising energy costs.

What Do These Executive Orders mean for New Jersey Residents?

In the short term, New Jersey Household Utility expenses should not increase at any point in 2026. There are conversations about how the state can press the electric distribution companies to force the AI Data Centers to pay more for their part in overloading the electrical grid.

Finding alternative energy sources is where politics can get in the way of the public good.  The last two years of Governor Phil Murphy's tenure, there were extensive plans to build offshore wind farms and use other offshore resources for alternative energy. But those plans were scrapped due to public outcry and changes to federal regulations.

New Governor Mikie Sherrill, a Democrat, has already highlighted changes in federal government policies as an obstacle for New Jersey. One of her Executive Orders invokes the Disaster Control Act, and names President Donald Trump, a Republican, as one of the reasons The Garden State is in this energy resources predicament.

The long-term plans that Governor Sherrill outlines are to build new nuclear power plants, along with more solar charging and battery storage generation stations. Political opponents to the new Governor's proposed plans have asked how the state will pay to build these new alternative energy sources, and what it could cost taxpayers in the long run.