New Jersey residents are bracing for a significant increase in energy prices, prompting a legislative inquiry into the underlying causes. Representatives from JCP&L, Atlantic City Electric, and two other gas and electric utility companies recently testified before joint legislative committees to explain the impending price surge. Several factors are contributing to this rise, including increased wholesale energy supply costs, expenses associated with the PJM capacity auction, and heightened electricity demand spurred by unusual weather patterns. JCP&L spokesperson Teresa Reed acknowledged the burden on customers, citing these combined pressures. Atlantic City Electric's Phil Vavala stated the price increases were anticipated, pointing to New Jersey’s infrastructure challenges. These challenges include shortcomings in grid capacity, the retirement of existing power plants, the need for updated transmission infrastructure, and the potential for increased energy consumption from new large-scale users. Governor Murphy has requested an investigation into the auction process by the Federal Energy Regulatory Commission. The utility companies are currently working on a proposal outlining a potential deferment plan. This report was supported by the Corporation for Public Broadcasting.

With elections looming in November for New Jersey's Governor and Assembly, both parties are striving to duck voter backlash as electricity prices surged this week due to a nearly tenfold increase in P...