In the sweltering heat of summer 2025, New Jersey residents are facing a harsh reality: electric bills that have tripled in some cases, pushing families to the brink of financial strain. As highlighted in a recent opinion piece from the New York Post, these skyrocketing costs aren’t just a seasonal blip—they’re the result of aggressive decarbonization policies, premature plant closures, and surging demand from emerging technologies like AI data centers and electric vehicles. With the state’s gubernatorial race heating up, these issues could reshape the political landscape in the Garden State. But beyond the headlines, let’s dive into New Jersey’s energy mix and how its electricity costs stack up against the rest of the nation.
The Crisis Unfolding in New Jersey
Residents like Rebecca from Highland Park are emblematic of the problem. Her monthly PSE&G bill jumped from an average of $300 to over $1,000, despite no changes in household usage. “I don’t know how we’re expected to absorb these new bills,” she lamented on social media. Another local, Felix Urman, tallied up the cumulative hits: property taxes up 6.3%, car insurance up 15%, home insurance up 17%, and health insurance up 19%. “How is anyone supposed to afford to live here?” he asked.
The root causes, according to energy experts, stem from a mismatch between supply and demand. New Jersey has aggressively phased out coal plants and shuttered the Oyster Creek nuclear facility in 2018 under Governor Phil Murphy. Dan Lockwood of PJM Interconnection, the regional grid operator, pointed to “decarbonization policies that have led to an uptick in generator retirements” as a primary driver of higher prices. Compounding this is an “unprecedented spike in electricity demand” from data centers and electrification trends.
Critics, including State Assemblyman Alex Sauickie, dismiss token gestures like a $30 rebate as inadequate: “That’s not help… a Band-Aid over a bullet hole.” The fallout? Families are cutting budgets, skipping payments, or even considering relocation. Politically, this is turning the solidly Democratic state “purple.” A recent poll shows affordability and taxes as top voter concerns, with Republican Jack Ciattarelli leading on taxes by a wide margin over Democrat Mikie Sherrill. As the November election approaches, these energy woes could indeed cost Democrats dearly.
New Jersey’s Energy Mix: A Heavy Reliance on Gas and Nuclear
To understand the vulnerability behind these price surges, it’s essential to examine New Jersey’s electricity generation sources. As of 2024, the state relies heavily on natural gas and nuclear power, with renewables playing a minor role. This mix reflects a transition away from coal (now negligible) but highlights gaps in scaling up alternatives like solar and wind.
With New Jersey having 49 percent natural gas and 45 percent nuclear, you have to consider the taxes and distribution costs of a Democratic-run state. It doesn’t make sense that their prices are increasing so significantly.
Here’s a breakdown of New Jersey’s electricity generation by source in 2024:
Source
Percentage
Natural Gas
49.6%
Nuclear
45.0%
Solar
2.9%
Biomass
1.1%
Other Gases
0.3%
Petroleum & Wind
<0.1%
This data highlights the state’s reliance on fossil fuels and nuclear power for baseload energy, which provides reliability but exposes consumers to fluctuations in gas prices and regulatory changes.
While New Jersey aims for 50% renewable energy by 2030 and 100% carbon-neutral generation by 2050, current progress lags, with only about 4% of its energy coming from renewables today. The closure of nuclear plants without adequate replacements has exacerbated supply shortages, contributing to the bill spikes.
Electricity Costs: Where New Jersey Ranks Nationally
New Jersey’s residential electricity rates aren’t the highest in the U.S., but at 20.49 cents per kilowatt-hour (kWh) as of May 2025, they place the state at 11th nationwide—still burdensome for many households, especially during peak summer usage.
For context, here’s how New Jersey compares to the top 10 states with the highest average residential electricity prices (in cents per kWh, May 2025 data from the U.S. Energy Information Administration):
Rank
State
Price (¢/kWh)
1
Hawaii
41.03
2
California
35.03
3
Connecticut
31.64
4
Massachusetts
29.94
5
Rhode Island
29.00
6
Maine
27.91
7
New York
26.67
8
Alaska
26.08
9
New Hampshire
24.02
10
Vermont
23.99
These figures reveal a pattern: States with high costs often grapple with geographic challenges (e.g., Hawaii and Alaska’s isolation), aggressive green policies (California, Northeast states), or limited local generation. New Jersey’s position just outside the top 10 amplifies concerns, as recent summer surges suggest rates could climb further without intervention. Energy policies have to be the reason for the high cost in New Jersey.
Nationally, electricity prices rose about 6.5% from May 2024 to May 2025, driven by similar factors like inflation, demand growth, and infrastructure needs.
For New Jersey, the combination of high baseline rates and policy-driven supply constraints makes affordability a pressing issue.
Looking Ahead: Lessons for Energy Policy
New Jersey’s electric bill crisis serves as a cautionary tale for the energy sector. While decarbonization is crucial for combating the alleged climate change and keeping the wealth transfer from the rich to the even richer, hasty transitions without building sufficient replacement capacity can lead to painful economic fallout. As demand from AI, EVs, and electrification surges, states must prioritize a balanced energy mix, bolstering renewables while maintaining reliable sources like nuclear.
For voters and policymakers alike, the message is clear: Energy policy isn’t just about the environment; it’s about everyday survival. As the Garden State heads to the polls, the outcome could signal broader shifts in how America approaches its energy future. Stay tuned to Energy News Beat for more updates on these evolving stories. We are witnessing a global trend where regimes are changing in response to high energy prices. Changing political parties at the voting booth counts in the regime change.
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