Members of a joint Senate and Assembly committee on March 28 pressed state regulators and PJM Interconnection about wholesale electricity price increases that will translate into higher residential and business bills this summer.

The hearing followed results from PJM’s most recent capacity auction, which produced much higher clearing prices than earlier auctions and—according to the New Jersey Board of Public Utilities (BPU) and the Division of Rate Counsel—will raise retail costs for customers statewide.

Why it matters: wholesale capacity prices are one component of the retail bill. When the auction clears at a higher level, utilities and suppliers pay more for capacity that is then recovered in customer rates. The committee focused on near‑term relief for vulnerable households and on market, transmission and permitting reforms to bring new supply online faster.

What officials said

Christine Gould Sidovi, president of the New Jersey Board of Public Utilities, told the committee New Jersey is part of the 13‑state PJM regional grid and that BPU staff has pushed for PJM and FERC changes to address “artificial scarcity” in market rules. Sidovi said the board is planning near‑term bill credits and convening rule and program changes to increase solar and storage and to expand the Universal Service Fund enrollment to lower bills for low‑ and moderate‑income customers.

Asim Haq, senior vice president, governmental member services for PJM Interconnection, and other PJM staff described the technical market and planning steps PJM has taken and said demand growth—driven by data centers, electrification and manufacturing—has sharply changed forecasts. Haq said PJM has pushed queue reforms, opened a reliability‑resource lane and filed market‑rule changes with the Federal Energy Regulatory Commission (FERC), but said those reforms take time to affect prices.

Division of Rate Counsel director Brian Lipman urged the committee to use short‑term funds to shield the most vulnerable, to require stronger oversight of transmission project costs, and to press for market‑rule changes at FERC to prevent future auction spikes.

Short‑term relief and uncertain timing

BPU said it is proposing a repeat of a summer bill credit targeted to low‑ and moderate‑income customers who qualify for winter protections (a $175 payment in the prior year, shown in committee discussion as costing roughly $48 million). The board also is proposing an expanded Universal Service Fund (USF) enrollment push and is exploring bill credits funded from the Clean Energy Fund and solar alternative compliance payments.

Lawmakers repeatedly asked how quickly new generation can come online. Regulators and PJM staff said solar and battery projects already progressed through interconnection can be fastest—often two to three years—while new natural‑gas plants typically require five to seven years to permit and build. Committee members pressed whether the state should pursue faster siting, stronger regional coordination, or require large energy users to secure their own supply.

What the committee pressed for next

Members requested clearer, public PJM data on auction bidders and on the interconnection queue, stronger oversight of “supplemental” transmission projects, and emergency steps to raise enrollment in low‑income bill programs. Several members said the state should consider whether policy choices—like the pace of electrification and the current calls for a large increase in renewables—were made without adequate planning for grid needs and consumer costs.

Ending note

Committee leaders said they would press PJM, FERC and state agencies for faster transparency, and explore legislative options to accelerate projects that can quickly add capacity or lower customer bills. Multiple witnesses warned that without quick, practical steps to increase capacity or hedge wholesale purchases, the summer will put substantial upward pressure on household and business electricity costs.