New Jersey utility rate increases and legislative debate

Utility costs in New Jersey have seen significant increases, with a Goldman Sachs Global Investment Research study indicating that electricity prices in the state have risen by 43.4% over the last three years. This rate of increase is notably higher than the national average of 13.8%.

In October 2026, Atlantic City Electric customers experienced a net change of approximately $1 per month, as decreases in distribution charges were offset by rising electricity supply, transmission, and surcharge costs.

In response to these rising expenses, New Jersey lawmakers are debating legislation to establish new energy oversight bodies, such as a state energy resource and development division or a Department of Energy. Proponents argue these agencies are necessary because the current Board of Public Utilities cannot effectively protect ratepayers while expanding power supply. Conversely, Brian Lipman, Director of the Division of Rate Counsel, has warned that such legislation would ‘almost certainly result in higher bills for New Jersey ratepayers’ due to a lack of clarity regarding power purchasing and rate-setting processes.