New Jersey seniors could see their monthly electric bills increase by $20-$25 this summer due to a controversial regional energy auction. Governor Phil Murphy is fighting back, calling for a federal investigation into possible market manipulation.
In a recent letter to the Federal Energy Regulatory Commission (FERC), Governor Murphy requested an investigation into the 2024 Base Residual Auction conducted by PJM Interconnection, the organization managing electricity for 13 states including New Jersey. The auction resulted in a nearly tenfold price increase, with total costs jumping from $2.2 billion to $14.7 billion.
“I am deeply concerned with how increasing energy bills will affect families and businesses as we head into the summer months,” said Governor Murphy, highlighting the particular impact on those living on fixed incomes.
An independent market monitor concluded the auction was “significantly affected by” market power abuse through resource withholding, resulting in payments “approximately twice as high as needed.”
New Jersey has led a multi-state effort to address these increases, working with governors from Pennsylvania, Illinois, Maryland and others. Their advocacy recently secured an agreement from PJM that will save consumers $21 billion over two years across the region.
Meanwhile, New Jersey continues investing in solar energy, battery storage, and energy efficiency programs to reduce dependency on the regional market. Jersey Senior Weekly recently highlighted the potenital benefits and cost savings associated with solar energy.
For seniors struggling with utility bills, financial assistance is available. Residents can apply online at nj.gov/dca/dcaid or call the New Jersey Utility Assistance hotline at 1-800-510-3102 for information about utility bill relief programs.