Affordable, Reliable Energy Should Be the Next New Jersey Governor’s Priority

Rare New Jersey power outage. The governor’s election is about energy affordability amid 17–20% power price spikes this summer. This price hike might have been avoided, and New Jersey voters can influence energy policy.

The 2019 state Energy Master Plan calls for solar and wind to replace reliable coal and natural-gas capacity by 2035. Switching to renewable energy is excellent, but the pace and expense worry residents and business owners about reliability and affordability.

New Jersey has one of the highest electricity rates in the nation, 24.88 cents per kilowatt-hour. This is 42% over the national average and 25% higher than last year. The average 10,800-kWh home faces growing energy costs.

Renewable energy is costly. Recent state estimates suggest the renewable component of the proposal might cost $5 billion year and raise electricity costs by 35%. The state has shut down five coal facilities and the Oyster Creek nuclear reactor for nearly seven years, losing 2,500 megawatts of generation capacity, enough to power nearly two million homes. In 2018, New Jersey exported electricity; today it imports 20%, mostly from Pennsylvania. Imports raise gas and transmission prices and rates.

Natural gas and nuclear supply 90% of New Jersey’s electricity, but solar and wind are promising. The system needs reliable, dispatchable power to adapt promptly to weather changes and demand in peak summer and winter.

Energy policy dominates New Jersey’s governorship race. The incoming governor should balance affordability, reliability, and the environment. The Energy Master Plan should be updated to give flexibility, improve transmission infrastructure, and protect natural gas and new nuclear technologies during the transition rather than setting a lofty goal that may burden consumers.

The state cannot go 100% renewable tomorrow. Protecting consumers, stabilizing electricity during demand surges, and progressively moving to greener power without cost requires a thorough plan. New Jersey residents and businesses need reliable electricity. High bills and unpredictable supplies will worsen without it. The next governor can continue the renewable energy revolution and supply inexpensive, reliable electricity with a fresh, practical approach.

Sources
NJBIZ opinion piece on New Jersey’s energy plan and rising utility bills
ROI-NJ op-ed on energy affordability in New Jersey