The current energy market rules set by PJM are not working, energy costs are rising and there’s not enough power generation to meet expected demand.

While utilities like PSE&G do not make a profit on the portion of the supply charge that reflects energy usage (i.e. the energy you consume), we recognize how the burden of higher prices falls on families, businesses and communities.

But it doesn’t have to be this way.

Read more about what New Jersey can do to make energy more affordable for everyone.

Energy market reforms

At PSE&G, we are advocating for reforms within the PJM region to improve market efficiency and potentially reduce costs for customers. PJM is a regional transmission organization and independent system operator that manages the electricity grid and operates a competitive wholesale electricity market in a 13-state area, including New Jersey.

Current market rules, set by the regional grid operator PJM, are not working. Recent capacity market developments in PJM, most recently the outcome of its 2024 capacity market auction, will have a significant impact on electric customers’ bills later this spring.

PJM’s market is not procuring sufficient supply and, when coupled with increased electric demand, this is resulting in significantly higher rates for our customers.

Support leadership across the state

At PSE&G, we believe there are a variety of solutions to address the long-term energy affordability situation now facing New Jersey. These solutions include, but are not limited to, an integrated energy plan that prioritizes increasing in-state generation and expanding transmission infrastructure.

There is no one-size-fits-all solution. Solving the challenge of energy affordability will take an all-of-the-above approach.

We are here to support whatever solutions the state determines are appropriate for the people of New Jersey.

Infrastructure enhancements

At PSE&G, we’re advocating for infrastructure enhancements to ease supply constraints and potentially reduce costs for customers.

New Jersey is a net importer of energy, with approximately 20% of the electricity used coming in from other states. Additional transmission infrastructure is needed to bring new sources of generation into the state.

The State of New Jersey could work with its utilities and with PJM to develop regional transmission solutions that would move out-of-state power into New Jersey.

When policymakers, utilities and communities come together, we can create a more reliable and cost-effective energy system for New Jersey.

Resources available to you:

  • We estimate that roughly 100,000 additional customers are eligible for payment assistance but have yet to sign up. Take the first step by visiting pseg.com/help.
  • Business customers can take steps to save energy and money. Take the first step by visiting bizsave.pseg.com.
  • How to read your bill.

 

Learning Center

Learn more about energy markets from these state and national resources.