Key Takeaways
- Four state policies could save the average New Jersey household $467 per year on electric bills, according to a new report from Synapse Energy Economics
- Synapse’s report also shows that state policy action could cut total statewide energy costs by $14.3 billion by 2030 compared to the status quo
- Access the PDF version of this memo
Background
Mikie Sherrill won the New Jersey governor’s race on a message of affordable, clean energy. Meanwhile, soaring data center power demand is starting to strain energy supplies and drive up costs for New Jersey households and businesses. High utility profit margins and the Trump administration’s repeal of clean energy tax credits for affordable, fast-to-build sources like wind, solar, and battery storage will only make things worse.
On top of that, PJM Interconnection—which manages the nation’s largest grid covering 67 million people across New Jersey and 12 other states—has stalled around two thousand new, low-cost clean power projects from getting online at the height of its interconnection queue backlog. These multi-year delays, averaging five years, have forced the grid to rely on costly, aging fossil plants and allowed demand to outpace supply.
Together, supply strain and demand growth have contributed to a 17 to 20 percent jump in New Jersey electric bills this past June and, if left unchecked, will continue to increase costs.
Key Findings From Synapse’s New Report
As residents across New Jersey face skyrocketing electricity bills, a new independent report from Synapse Energy Economics finds that state leaders can take immediate action to deliver much-needed relief to New Jersey households. Synapse's modeling evaluated the combined consumer impact of four policy interventions:
- Getting clean energy projects connected to the grid
- Data centers supplying their own affordable, clean energy
- Adopting smart EV charging programs
- Reining in utility profit margins
According to their findings, residents could see their monthly power bills lower by 12 percent by 2030 through a combination of the policy actions outlined in the report. Statewide, this could cumulatively lead to $14.3B in savings by 2030.
