By Sean Barry, NJPI Jr. Fellow
When Governor Mikie Sherrill was sworn in as New Jersey’s 57th governor, she did something quite unusual but very revealing. In the middle of her inaugural address, she paused to sign her first executive order (one of two focused specifically on electricity costs and energy issues). The moment was symbolic but also meaningful. From the start of her administration, Sherrill made clear that energy affordability would not be a secondary policy concern or postponed to future budgets. It would be addressed immediately and publicly.
That decision reflects the reality many New Jersey residents face. Over recent years, electric bills have increased, become more unpredictable, and harder to understand. The reasons are complex. New Jersey generates only part of the electricity it consumes, leaving households exposed to regional capacity markets, transmission charges, and infrastructure costs largely outside the state’s control. Demand continues to grow as transportation and heating electrify and as energy-heavy uses, such as data centers, expand across the region. But for residents, the complexity of electricity markets matters less than the outcome: a monthly bill that keeps rising, often without a clear explanation.
Sherrill’s first executive order declares a state of emergency on utility costs and instructs the New Jersey Board of Public Utilities to provide immediate relief. Importantly, the order does not pretend that the governor can simply freeze every part of an electric bill. Generation prices are set through regional auctions, and transmission rates are regulated federally. Instead, the order focuses on the tools the state does have. It calls for the use of bill credits and rebates, funded through existing mechanisms, to offset expected supply increases in 2026. The goal is not to eliminate cost pressures overnight but to prevent sudden spikes from hitting households all at once.
The order also instructs regulators to review what appears on customer bills, including Societal Benefits Charges and Clean Energy Program spending. Here, affordability and efficiency are seen as complementary rather than competing goals. Energy efficiency is framed not just as a climate policy but as a way to reduce bills by lowering consumption itself. If households use less energy, they are less affected by price volatility regardless of regional market fluctuations. The order further gives regulators flexibility to pause or adjust proceedings that could result in higher customer costs, where the law permits. In a system where timing often determines outcomes, even procedural changes can make a difference.
If the first order is about stabilizing residents’ payments in the short term, the second executive order addresses the underlying problem. Rising electricity costs are not merely a billing issue. They are a supply and demand issue. New Jersey’s limited in-state generation and increasing peak demand put upward pressure on capacity prices, which ultimately get passed on to consumers. The second order directs state agencies to speed up the development of new energy resources, including utility-scale solar, community solar, and battery storage. By accelerating procurement and expanding capacity, the administration aims to reduce reliance on imported power and improve system reliability.
Equally important is the order’s focus on peak demand. Capacity costs are driven not by how much electricity is used on average, but by how much is needed during the most stressed hours of the year. The order promotes the development of virtual power plants and demand-response programs that pool distributed energy resources to cut demand during these peaks. Even small reductions can significantly impact costs. The order also tackles a less visible cause of high prices: delays. Permitting and interconnection backlogs increase financing costs and slow down projects that could help ease supply constraints. By directing agencies to coordinate and streamline approvals while maintaining safety and environmental standards, the administration recognizes that time itself has become an affordability issue.
Creating a Nuclear Power Task Force highlights a longer-term perspective. Advanced nuclear technologies are not a quick fix for high bills, but reliable, carbon-free power will be essential if New Jersey hopes to balance affordability, reliability, and decarbonization in the future. Starting that discussion now raises an important question: can the state set the foundation for long-term stability while providing immediate relief?
Skepticism about the limits of gubernatorial power is justified. New Jersey cannot control regional capacity auctions or federally regulated transmission rates, and constitutional restrictions prevent the state from forcing utilities to operate at a loss. But recognizing these limits does not mean state actions are pointless. The key question is whether New Jersey can reduce volatility, speed up supply, lower peak demand, and use its regulatory authority strategically. Based on her early actions, Sherrill’s administration appears willing to work within these constraints rather than ignore them.
As these orders move from plans to action, their success will depend on execution. Will bill credits be delivered quickly enough and in sufficient amounts to offset expected increases? Can faster procurement lead to actual megawatts online before demand rises further? Will permitting reforms shorten project timelines without causing legal delays? These are questions of follow-through, not just intent.
Governor Sherrill has prioritized energy affordability from her very first day. The orders she signed don’t promise easy solutions to a complex problem, but they do promise engagement. Engagement across agencies, over different timeframes, and through tough trade-offs that energy policy requires. For residents of New Jersey, the true test will be simple. When the next electric bill arrives, does it feel more manageable than the last? If it does, these early steps will be more than symbolic. They will represent a move toward a more affordable energy future in a state that desperately needs one.
