New Jersey electricity rates spiked more than most other states in 2025, congressional report says

Last year, electricity rates in New Jersey spiked more than almost any other state, according to a new congressional report.

Congressional Democrats on the Joint Economic Committee released a report that says New Jersey's electric rates increased by 16.9% percent in 2025, beaten only by the District of Columbia with a 23.5% spike.

The increase on average nationally was just 6.4%.

PJM Interconnection operates the electric grid for 13 states, including New Jersey, and New Jersey Congressman Frank Pallone said it hasn't been able to build up its infrastructure to meet demands.

The congressman said PJM's proposal to avoid electric rate hikes is to cap prices for the wholesale auction of electricity. He's asking the Federal Energy Regulatory Commission to approve the cap.

The Democrat is also blaming the Trump administration.

"The president has refused to allow clean energy to move forward and is trying to bring back coal power plants and rely on fossil fuels," Pallone said.

Republicans, meanwhile, say Democratic policies like wind farms have led to high electricity costs.

"We closed off five or six generating plants that should have been converted to natural gas," Republican State Sen. Declan O'Scanlon said.

He said solely blaming PJM and FERC doesn't make sense.

"If it were their fault, why is New Jersey not on par with other states regarding its increase?" he said.

Regardless of who is to blame, ratepayers are angry.

"I went from $71 on an equal payment plan up to $106 on an equal payment plan," Scotch Plains resident Laurie Martins said. "The cost of living has skyrocketed, even with my gas."