Latest news with #BoardofPublicUtilities
E&E News
10-06-2025
- Business
- E&E News
New Jersey offshore wind project bows out
Offshore wind development has come to a halt in New Jersey. The project named Atlantic Shores asked New Jersey utility regulators last week to cancel its contract to supply electricity to the state, marking the latest blow to the only offshore wind project in the state with a federal permit. The 1,500-megawatt development would have generated enough electricity to power 700,000 homes. The move came as Atlantic Shores was facing economic and political headwinds. High construction costs drove up the price of the project, and President Donald Trump repeatedly targeted the proposal since returning to the White House. Advertisement In a filing with the New Jersey Board of Public Utilities, Atlantic Shores cited EPA's decision to revoke an air quality permit for the project and Trump's executive order that blocked permits for new offshore wind projects as the reason for its decision.
Yahoo
05-06-2025
- Business
- Yahoo
New Jersey Democrats propose $430M plan to defray electricity price increases
Gov. Phil Murphy announces a plan to give ratepayers $100 minimum to defray a sudden, sharp increase in electricity prices in Newark on June 5, 2025. (Courtesy of the governor's office) New Jersey will send ratepayers at least $100 to defray the impact of a steep rise in electricity prices that took effect this month, top Democrats announced Thursday. The $430 million program, which is not yet approved by state energy regulators, would provide each of the state's 3.9 million ratepayers with $100, with an additional $150 for low- and moderate-income residents. 'We're taking this step today because the fact is the people of New Jersey are being battered by the rising cost of energy, and by the way, this is not unique to New Jersey,' Gov. Phil Murphy said at a press conference in Newark. 'You can look all around the country right now, and certainly all around this region to see that we are not alone. Wholesale electricity prices are up multiples of what they were even a year ago today.' Christine Guhl Sadovy, president of the state Board of Public Utilities, suggested residents enrolled in the state's winter termination program would be eligible for the $150 payment. That program bars utility shutoffs between Nov. 15 and March 15. Officials were deliberating a second $100 payment but had not reached a decision as of Thursday afternoon, Murphy said. It was not immediately clear when or how the benefits would be paid. Murphy suggested they could come in September or October but cautioned that the timeline is hazy as the aid still needs approval from the Board of Public Utilities, whose next meeting is set for June 18. Lawmakers' announcement comes just days after electricity prices rose by roughly 20% at the start of June, pushed upward by the results of price-setting auctions held in July and February, and as hot weather pushed temperatures to roughly 90 degrees in much of the state Thursday. It also comes as all 80 seats in the state Assembly — which Democrats control by a 52-28 majority — are on the ballot in the fall (the primaries are on Tuesday). Funding for the payments would come from the state's Clean Energy Fund, the state's share of Regional Greenhouse Gas Initiative money, and the Solar Alternative Compliance Payment, which is paid by electricity suppliers that are unable to meet the state's renewables standard. Some progressive groups took exception to the funding sources. 'We appreciate that the governor and lawmakers are taking seriously the strain high energy costs place on families, but how we deliver relief matters. Diverting funds from RGGI and the Clean Energy Fund risks weakening the very programs that lower long-term costs, strengthen our grid, and create local jobs,' said Alex Ambrose, a policy analyst for New Jersey Policy Perspective. Richard Henning, president of the New Jersey Utilities Association, a trade group that includes the state's four electric distribution companies, said the organization supported the proposal. The price of electricity rose sharply after being roughly level for more than a decade as supply tightened and demand shot upward, driven higher by power-hungry artificial intelligence data centers proposed throughout the footprint of PJM Interconnection, the grid operator for New Jersey, 12 other states, and the District of Columbia. Democrats have blamed PJM for the price spike, charging yearslong delays in its interconnection queue had depressed supply by leaving projects, including 79 in New Jersey, without a line into the grid. 'We in the Legislature have a tone of outrage that New Jersey is being held hostage,' Sen. John Burzichelli (D-Gloucester) said. Murphy said he and legislative leaders would meet with PJM CEO Manu Asthana next week. Republicans have blamed the Murphy administration's renewables-heavy energy plan and the sunsetting of some existing fossil fuel plants for the increases. They and some Democrats have said the state should pursue a more diverse energy mix to stall further price hikes. 'It simply delays the pain to avoid political fallout in an election year,' Sen. Tony Bucco (R-Morris), his chamber's minority leader, said of the plan announced Thursday. 'This is not relief, it's a cover-up. Trenton Democrats are once again trying to deflect the consequences of their own failed energy policies.' Legislators and regulators are considering other methods of reining in energy prices. The Board of Public Utilities is fielding proposals that could delay electricity price increases, leaving ratepayers with deferred balances they would be responsible for paying later. Guhl-Sadovy declined to comment on the status of that proposal or the effect Thursday's announcement would have on it. In recent weeks, legislators have advanced bills that would change how state regulators set utilities' profit margins, require they study data centers' impact on energy rates, and create a new rate-setting process for data centers, among others. 'Like so many states across the country, we recognized early on that the rates would not be sustainable, more importantly, that they just certainly weren't fair. That's why we went to work,' said Assembly Speaker Craig Coughlin (D-Middlesex).
Yahoo
02-06-2025
- Business
- Yahoo
N.J. Dem senators call for probe of grid operator as electric prices surge
Democratic senators want grid operator PJM investigated. Republicans say the Murphy administration is to blame for high electric prices. (Dana DiFilippo | New Jersey Monitor) State senators sparred on the chamber's floor Monday over a resolution directing New Jersey energy regulators to launch an investigation of the state's grid operator, one day after steep electricity price hikes took effect. The resolution, which passed in a 25-12 vote along party lines and must still be approved by the Assembly, calls on the Board of Public Utilities to investigate PJM Interconnection's capacity market auction, a price-setting auction that saw a nearly tenfold increase over the previous sale last July. Democrats have sought to pin the blame on the rise in electricity bills on PJM, arguing it was too slow to connect renewable projects to its grid, thereby depressing supply and pushing prices upward. In some cases, they've outright claimed PJM's process was corrupt. 'The problem begins and ends with a grid that doesn't work. We are not investing enough money in this grid. The grid is held together by chewing gum, toothpicks, and bobby pins,' said Sen. Bob Smith (D-Middlesex), who chairs the chamber's energy panel. 'So now anyone who wants to enter the grid has to get an approval for a connection, and in the case of New Jersey, for the last two-and-a-half years, we've had 79 projects in the queue that PJM would not approve.' Industry officials and experts have said electricity prices are rising because of an imbalance between supply and demand. Demand, which had been roughly stable for decades, is surging amid growing electrification and the rise of power-hungry artificial intelligence data centers. Meanwhile, New Jersey's own supply of electricity has fallen as the state shuttered fossil plants and renewable projects — chiefly offshore wind — struggled to get off the ground, leaving it more reliant on power imported through PJM's grid. Republican members have charged Gov. Phil Murphy's renewable-heavy energy agenda and reliance on offshore wind projects are responsible for the price surge. The offshore wind projects have stalled because of rising costs and opposition by the Trump administration. 'Experts pointed to a whole host of sources and culprits that have brought us here today, a place that was foreseeable and predictable. And now we want to limit the investigation to PJM?' said Sen. Tony Bucco (R-Morris), the chamber's minority leader. Some GOP members argued the Board of Public Utilities, which they charge is partly to blame for rising energy prices, was an inappropriate pick to conduct the probe. Sen. Bob Singer (R-Ocean) said there is some support for sunsetting the board. 'You've got to put the problem at the foot of those who created it. You've got to investigate those who created it, and you have to replace them if necessary,' Singer said. The Board of Public Utilities is the regulatory body charged with approving utilities' requests for rate increases. New Jersey's regulated utilities do not profit from the sale of electricity itself, but they are permitted to recoup the costs of their investments and some other costs at a markup, typically around 9.6%. PJM itself declined to comment on the resolution but said the current price spike was driven by a divergence between supply and demand. 'These higher prices are the result of a loss in electricity supply caused primarily by decarbonization policies that have led to an uptick in generator retirements, coupled with an unprecedented spike in electricity demand due largely to the advancement of data centers to power artificial intelligence, the electrification of vehicles and heating systems, and the onshoring of U.S. manufacturing,' said Dan Lockwood, a spokesperson for PJM. The Republicans said a special committee that held hearings on rising energy prices earlier in the spring should conduct the investigation, which they said should include a probe of the Board of Public Utilities. Democratic members argued the board has institutional and subject matter knowledge that would lend expertise to an investigation that might be absent under the special committee, though some said the panel should continue to play a role. Still, Sen. Paul Sarlo (D-Bergen), the chamber's budget chairman, questioned the regulatory agency's future. 'We ultimately should be part of the long-term solution, and I'm not sure if BPU should be part of the long-term solution under the next governor,' Sarlo said. Murphy leaves office in January. The Senate approved separate legislation Monday that would require the Board of Public Utilities to study data centers' impact on electricity prices after tabling a Republican attempt to amend it. That bill, which passed the Senate unanimously, now goes to Murphy's desk.
CBS News
31-05-2025
- Business
- CBS News
New Jersey state senator introduces bills to combat high energy costs
A New Jersey state senator has introduced a series of bills to combat high energy costs as utility companies plan rate hikes that will increase bills as much as 20%. Sen. Britnee Timberlake held a press conference Friday, saying her constituents tell her they're being forced out of their homes because of high utility bills. "You have to account for the cost to heat and cool the home ... and these utility companies need to be stopped," she said. "People need the relief now" Timberlake says the Board of Public Utilities approved raising electricity rates by 17-20% starting in June. The Democrat is introducing a series of bills that in part call for a study of what she refers to as private companies that are monopolies, going back to 2020 energy levels, and placing a 2% cap on rate hikes every five years. "It needs to be fast-tracked because people need the relief now," Timberlake said. PSE&G said in a statement that the company "works hard to keep customer bills as low as possible while providing safe and reliable energy." They added both the demand for energy and cost are rising, and utility companies like PSE&G don't profit on the 17% increase. Timberlake's bills have made it through the Legislature. It remains to be seen if Gov. Phil Murphy or a future governor would sign them. CBS News New York reached out to the Board of Public Utilities but has not heard back. New Jersey residents describe difficult costs Tabetha Bassit, with Echoes Inc., says it costs $2,000 a month to light up her counseling center and the neighboring funeral home. "The more we absorb these costs, it creates a difficulty for us to offer free counseling," she said. East Orange resident Rev. Ella Johnson said her utility bill, which includes gas and electric, is out of control. "I have been a widow for 11 years, and it's not easy trying to maintain a home," East Orange resident Rev. Ella Johnson said. "The bills are not easy to pay because they can run anywhere from close to $600 in the month of January, and it gradually comes down." The 85-year-old wants to stay in the home she's been in for 56 years but says it's getting more difficult. "It is terrifying ... because not only do I have this to take care of, but I have other things to take care of as well," she said.
Yahoo
22-05-2025
- Business
- Yahoo
Senate panel backs bills targeting New Jersey data centers
A data center underconstruction in Utah. Utility and interconnection officials have cited power-hungry data centers as a major cause of growing demand for electricity. (Photo by) A Senate panel approved another series of bills meant to reduce the impact of electricity prices that are set to soar on June 1. The bills, which cleared the Senate Environment and Energy Committee in divided votes Thursday, would raise data centers' share of electricity costs, boost construction of energy storage, and create an automatic approval process for residential solar projects, among other things. Environmental groups hailed the data center legislation, which would create a separate rate-setting process within the Board of Public Utilities for data centers with maximum monthly demands of at least 100 megawatts, forcing them to pay for increases in energy costs as a result of data center load. 'This bill would not only provide an incentive for data centers to drive consumption down, but it would also protect ratepayers from shouldering the unfair burden of the cost,' said Jay Weisbond, a policy assistant for the New Jersey League of Conservation Voters. It would also require rates for data centers to include cost recoveries for transmission or distribution infrastructure needed for their operation. The separate rate-setting process contemplated in the bill would take effect one year after its passage. Utility and interconnection officials have cited power-hungry data centers as a major cause of the growing demand for electricity. Electricity prices are spiking as demand that had been largely level for decades surges, and New Jersey's in-state generation has faced stumbles as offshore wind projects set to deliver thousands of megawatts fail or are blocked by federal regulatory authorities. Republicans have blamed Gov. Phil Murphy's wind-heavy renewable energy agenda and the shuttering of existing fossil plants for auction-driven price spikes set to arrive June 1, while Democrats have sought to lay the increases at the feat of PJM Interconnection, the grid operator for New Jersey and 12 other states. Assembly Democrats are particularly anxious about rising utility bills, as all 80 Assembly seats are on the ballot this year (Democrats hold a majority in the chamber). Separate legislation would require quarterly reporting on data centers' energy and water usage. Business groups opposed both bills, warning they would push data centers into other states, including those on the same grid as New Jersey, 'We can't entice data centers to locate in New Jersey if we're going to continually be putting roadblocks in the way or making it more expensive or problematic to develop here in New Jersey,' said Ray Cantor, deputy chief government affairs officer for the New Jersey Business and Industry Association. Murphy and legislators have sought to encourage AI development in New Jersey, including through tax credits, hailing it in July 2024 as a 'transformative industry that will change lives and grow our economy.' The state would be better served by boosting electricity supply than by targeting large energy users, Cantor said, adding that manufacturing plants and even hospitals could run similar loads. Though some suggested expansions, witnesses were broadly supportive of a bill requiring the Board of Public Utilities to procure and incent large-scale energy storage projects, which store energy produced at times of low demand to ease strains on production when demand is high. Storage projects could start operating in the short term and would more quickly affect prices than other types of generation, they said. 'It doesn't have to wait in line for PJM Interconnection, which we know takes years. It can be interconnected locally. It can be permitted locally, so it's the fastest way to build,' said Lyle Rawlings, CEO of Advanced Solar Projects Inc. 'These projects, we're not talking about 2029 or 2030, we're talking about 2026 that these can be brought online.' Separate legislation would require the Department of Community Affairs to create an online permitting platform to algorithmically approve residential solar projects. Municipalities could use the platform or set up their own automated solar approval system. Supporters saw it as another method of quickly standing up new energy supply. 'Local solar can be a critical tool in meeting our energy needs, but only if we need it. While large-scale solar projects are important, they are often facing multi-year delays in the PJM interconnection queue. Local solar, on the other hand, can be rapidly deployed,' said Elowyn Corby, mid-Atlantic regional director of the Vote Solar Action Fund. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
