Assembly Democrats Push for Answers from Utility Executives on Rising Rates

Joint Legislative Committee Holds Second Hearing on Energy Affordability

(TRENTON) – Representatives from four utility companies operating in New Jersey faced tough questions on energy affordability from Democratic lawmakers today during a joint hearing of the Assembly Telecommunications and Utilities Committee and the Senate Select Committee. This was the second joint meeting held to examine the reasons why energy prices are set to rise in June.  

“We’re committed to exploring all options to ease energy costs for New Jersey families and businesses, and that includes taking a hard look at the role utilities play in rate increases,” said Assemblyman Wayne DeAngelo, Chair of the Assembly Telecommunications and Utilities Committee (D-Mercer, Middlesex). “New Jersey ratepayers deserve transparency and accountability from utility companies, and we’ll continue working to ensure these discussions lead to real solutions that provide lasting relief.”

Democratic lawmakers told officials from Public Service Electric & Gas (PSE&G), Jersey Central Power & Light (JCP&L), Atlantic City Electric, and Rockland Electric that New Jersey residents and businesses should not be burdened by higher energy prices and asked the executives to offer solutions. 

“We’re telling you we want to lower utility rates for our constituents and we need ideas from you,” said Assemblywoman Andrea Katz (D-Atlantic, Burlington) during the hearing. “Our constituents are having to decide between food and their electric bill or their medical needs and their electric bill.” 

Assemblywoman Katz joined Assemblyman Dave Bailey in asking whether utility companies can afford to do more to lower bills.

“Would lowering the ROI (return on investment) by, say, a percentage or two, meaningfully decrease your ability to maintain and upgrade the grid?” asked Assemblyman Bailey (D-Cumberland, Gloucester, Salem.) “When we ask the question, ‘What is something that we can immediately address?’ that’s a number that can be immediately addressed.”

Democratic Assembly members expressed frustration over the executives’ failure to answer direct questions about company profitability and CEO pay.

Democratic lawmakers also questioned the utility executives about their relationships with PJM Interconnection, which holds annual capacity auctions to set rates. PJM has been slow to add clean energy projects to the electric grid, and the lack of adequate supply is the main factor behind the rate increases. The utility companies are voting members of PJM, yet during the hearing, executives were unable to answer questions about their role in designing the flawed capacity auction that led to higher rates. 

“It’s clear we need to prioritize increasing electricity generation right here in our state to ensure a more affordable and reliable energy future,” said Assemblyman DeAngelo. “We appreciate the input shared during today’s hearing, and look forward to reviewing the utilities’ proposals to smooth out rate hikes, as requested by the BPU. The legislature will continue to prioritize the issue of energy affordability, and our conversations will continue.”

Assembly Democrats have championed multiple bills that would offer relief and create long-term solutions for fair energy pricing. One of those bills was recently signed into law. Bill A4817 requires electric and gas public utilities to establish an “Energy Bill Watch" program. The program would let smart meter customers see their energy consumption and set thresholds to manage their usage. The legislation was sponsored by Assembly members Dave Bailey Jr., Heather Simmons, and Cody Miller.