In New Jersey, starting in June, as part of measures to combat the surge in electric bills, 3.9 million bill payers will receive between $100 and $250, depending on their income.
On the 5th, New Jersey Governor Phil Murphy held a press conference and announced, “The state plans to invest $430 million to lower the burden on residents’ bills,” and “Most households paying electric bills in New Jersey will receive $100, and low-income households that are economically vulnerable will receive up to $250.”
According to Governor Murphy, the subsidy will be paid in the form of electric bill credits, not cash payments. The state-issued bill credits will be applied to electric bills in one or two installments starting in July. Murphy said details on how the subsidy will be paid will be “clear and specific in the coming weeks.” The electric bill relief measure is pending approval from the state Board of Public Utilities (BPU).
Electricity rates in New Jersey are set to increase by up to 20% starting this month, raising concerns that electric bills will skyrocket during the summer. The main cause of the rate hike is the increase in wholesale prices for electricity supplied to the eastern United States.
While Governor Murphy, a Democrat, and the state Democratic leadership have maintained that this is an emergency measure to protect residents from the sharp increase in electric bills, some critics say it is a vote-buying strategy in anticipation of this year’s election. This year, New Jersey will hold a primary election on June 10 and a general election on November 4 to elect a new governor and 120 members of the state assembly, and some are pointing out that this measure was suddenly announced to prevent public opinion from worsening due to the surge in electricity rates.
The Republican Party, which is aiming to reclaim the New Jersey governorship for the first time in eight years, criticized, saying, “The root cause of the surge in electricity rates is the state government’s policies of investing too much in renewable energy plans and shutting down existing thermal power plants,” and “This measure is not a relief, but a cover-up. It is simply delaying the pain to avoid political repercussions during an election year.”
Opposition is also emerging from the progressive camp. They are taking issue with the fact that the funds needed to address the surge in electricity rates come from the state government’s clean energy fund and greenhouse gas countermeasure funds. The progressive think tank New Jersey Policy Perspectives said, “It is positive that the governor and the legislature are taking seriously the burden of high energy costs on households, but it is important to determine how to fund the subsidies,” and “using funds earmarked for clean energy projects to strengthen the future power grid for other purposes will have negative effects in the future.”