Governor Phil Murphy has unveiled a comprehensive plan to help New Jersey residents cope with steep energy bill increases that took effect in June 2025, providing both immediate financial relief and laying groundwork for long-term affordability solutions.
Immediate Relief for All Households
The centerpiece of Murphy’s plan delivers direct bill credits to all 3.9 million residential electric ratepayers in New Jersey. Every household will receive at least $100 deducted from their electric bills between July and December 2025. Low- and moderate-income families qualify for enhanced relief of up to $250, with eligible households receiving an additional $150 beyond the base credit.
This relief comes in response to electric bills rising as much as 20% compared to the previous year following rate hikes that began June 1, 2025. The administration attributes these increases to record-high wholesale electric prices and planning failures by PJM, the regional grid operator responsible for energy demand forecasting and clean energy integration.
Funding and Implementation
The state will fund these credits through multiple sources including the Clean Energy Fund, Regional Greenhouse Gas Initiative proceeds allocated by the Board of Public Utilities, and the Solar Alternative Compliance Payment account. The timing targets the high-usage summer months when residents face the greatest financial burden from increased rates.
Long-Term Solutions in Development
Murphy emphasized that these credits represent short-term relief while his administration pursues structural reforms. The state is calling for investigations into PJM’s market practices and capacity auctions, working with the New Jersey Board of Public Utilities to explore reducing long-term energy costs, and requiring utilities to file cost mitigation plans.
Additional measures include expanding the Winter Termination Program to cover summer months, suspending reconnection fees, and expediting new solar and community energy programs. The administration is also evaluating advanced nuclear technologies and other generation sources to address supply and cost issues.
While praised by advocates for providing immediate assistance, critics argue the plan only temporarily addresses underlying structural problems driving high energy costs. Murphy acknowledges the need for comprehensive reforms beyond these emergency measures to ensure lasting energy affordability for New Jersey residents.