Sherrill Proclaims State of Emergency Amid Skyrocketing Electricity Costs
New Jersey is facing an urgent electricity crisis, prompting Governor Mikie Sherrill to declare a statewide emergency. This crisis stems from rising electricity demand, primarily due to the proliferation of energy-intensive data centers. Alongside peak demand, reliability issues with the PJM grid further exacerbate the affordability challenges residents are experiencing.
Executive Actions to Address Electricity Crisis
In her inaugural actions, Governor Sherrill signed two executive orders aimed at addressing the electricity supply issues and providing immediate relief to consumers. The Board of Public Utilities has been instructed to expedite the development of renewable energy sources, including solar and battery storage systems.
Key Measures Under Executive Orders
- Rapid development of solar, battery storage, and virtual power plants.
- Establishment of a Nuclear Power Task Force to assess energy needs.
- Fast-tracking of energy projects to prevent blackouts and price spikes.
- Freezing of electricity supply rate increases.
- Improved transparency and accountability in the utilities sector.
Sherrill emphasized the need for both short-term relief and long-term reforms. The state requires immediate attention to prevent further issues, such as potential blackouts, which could arise without additional energy generation.
Significant Statistics and Predictions
PJM, the regional grid operator for New Jersey, forecasts that electricity demand will increase by 20% by 2030. This growth is largely driven by data centers that consume vast amounts of energy. Recent auctions conducted by PJM have already placed over $4 billion in financial obligations on New Jersey consumers.
Price Increases and Economic Impact
Electricity prices for residents have surged over 33% from June 2023 to June 2025. Overall customer electricity costs experienced an increase of nearly 30%. Furthermore, PJM’s capacity prices skyrocketed by more than 800% in 2024, reflecting the urgency for reform in the state’s electricity infrastructure.
To further scrutinize the situation, Sherrill’s administration is targeting the issue of “ghost load.” This term refers to the unnecessary and speculative energy demands attributed to excessive interconnection requests from large users such as data centers. Addressing phantom demand is essential to curtailing costs for families and businesses across New Jersey.
The urgency of these measures reflects New Jersey’s commitment to securing a reliable electricity future while ensuring affordability for all residents. As the crisis unfolds, swift action will be critical in stabilizing the state’s electricity landscape.
