Today, the New Jersey Policy Institute (NJPI) provided testimony at the New Jersey Board of Public Utilities (BPU) hearing regarding proposed changes to the state’s Energy Master Plan (EMP). Our comments focused on the risks and costs associated with widespread electrification and the need for a more balanced, consumer-friendly energy strategy.
Key Concerns About Full-Scale Electrification
Reliability Risks
New Jersey’s electric grid is not currently equipped to handle the drastic increase in demand that full-scale electrification would require. Without significant infrastructure upgrades, the state risks blackouts and service interruptions, particularly during winter peak demand when heating needs surge. PJM and other regional grid operators have also warned about resource adequacy concerns, highlighting the dangers of over-reliance on a single energy system.
Affordability for Consumers
The costs of electrification will hit ratepayers hard, with expensive grid upgrades and costly conversions from gas to electric heating. Low- and moderate-income residents will be disproportionately affected by appliance replacements, panel upgrades, and insulation improvements. Additionally, New Jersey’s Ratepayer Impact Study lacks a comprehensive cost-benefit analysis, raising concerns about the financial burden on consumers.
A More Balanced Approach
NJPI urged policymakers to prioritize energy reliability and consumer affordability by:
✅ Investing in grid infrastructure improvements before implementing electrification mandates.
✅ Preserving consumer choice rather than forcing expensive energy transitions.
✅ Conducting comprehensive cost assessments to ensure policies do not lead to skyrocketing energy bills.
New Jersey must adopt a diversified, pragmatic energy strategy that maintains reliability, affordability, and economic stability.
📖 Read NJPI’s full testimony here.
