Electricity bill credits, more ratepayer savings on way, Sherrill says
New Jersey Governor Mikie Sherrill signed three new laws aimed at reducing electricity transmission rates, requiring utility project approvals, and establishing a separate power rate for large artificial intelligence data centers. These measures are designed to ease the burden on ratepayers, address grid pressure from increasing data center demand, and foster a cleaner, more reliable energy system. Ratepayers are expected to receive a credit of at least $25 next month, with low-income families getting an additional $150.
Governor Mikie Sherrill of New Jersey announced a credit of at least $25 for 3.6 million ratepayers next month, with promises of further savings from newly signed laws and policy changes. Low-income families will receive an additional $150. These legislative actions are a direct response to average 20% bill increases starting in June 2025 and increasing pressure on the state's energy grid from high-demand artificial intelligence data centers, coupled with a decline in U.S. power plant construction.
One key law directs the state Board of Public Utilities to establish a separate rate structure for large load data centers consuming at least 50 megawatts monthly, which is intended to shift infrastructure improvement costs away from average ratepayers. Sponsors hope this will also incentivize data center operators to provide their own clean energy. A second law mandates utility membership in PJM Interconnection, the regional grid operator, eliminating an annual $60 million in transmission charges previously billed to customers. The third bill requires state oversight for supplemental transmission projects, such as battery storage and substation construction, allowing for faster approvals and aiming to reduce "wasteful spending" by utilities.
Additional energy-related measures are awaiting the Governor's action, including a bill requiring data centers to submit semiannual electricity and water usage reports to the Board of Public Utilities and legislation to eliminate $250 million in tax credits for these facilities. These reforms are supported by advocates like Eric Miller of Evergreen Action, who states they will slow rising electricity costs, hold utilities accountable, and deliver long-term reforms for a cleaner and modernized grid.