Sherrill Declares State Of Emergency In 1st Day As Governor

Gov. Mikie Sherrill declared a state of emergency over the rising cost of electricity in New Jersey on her first day in office.

Sherrill was sworn in as governor on Tuesday during a ceremony in Newark, succeeding former Gov. Phil Murphy. READ MORE: 9 Things To Know About Mikie Sherrill

As part of her election campaign, Sherrill said she would issue a rate freeze in New Jersey on her first day as governor – putting the brakes on skyrocketing utility costs. The former congresswoman has also been pitching a plan to “massively expand” solar, battery storage and nuclear power.

On Tuesday, the Garden State’s new governor signed two executive orders that act on these campaign pledges:

• RATE HIKE FREEZE – Sherrill’s first order authorizes the New Jersey Board of Public Utilities (BPU) to pause “any proceedings in which electric distribution utilities seek approvals for rate increases or cost recoveries.” The order also directs the board to use existing funds to offset electricity bill increases coming in June.
• STATE OF EMERGENCY – Sherrill’s second order declares an official state of emergency under the Disaster Control Act. The order seeks to cut the amount of red tape needed to create more solar and battery storage generation, and creates a task force to lead an effort to build new nuclear power plants. It also directs the board of utilities to require electric utilities to report on “ghost loads” that may be coming from artificial intelligence data centers.

According to Sherrill, the average residential electricity price in New Jersey went up more than 33 percent from June 2023 to June 2025. Electricity rates in the state are among the highest in the continental U.S.

Sherrill’s executive orders cite several reasons for the skyrocketing price of electricity in New Jersey:

“The recent rise in electricity bills in our state is due to several factors, including but not limited to the escalating cost of transmission and distribution infrastructure on which the grid relies, volatility in the price of natural gas, and the skyrocketing price of the future supply of reliable, wholesale electricity—also known as capacity—in the regional PJM market.”

PJM Interconnection, a regional transmission organization, coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

“Trenton will no longer accept the status quo and kick the can down the road while New Jersey families pay higher bills – not on my watch,” Sherrill said.

“These executive orders will deliver relief to consumers and stop rate hikes, so New Jerseyans aren’t facing ever increasing electric bills,” she said. “This will also create the conditions to massively expand New Jersey’s power generation, because more power in-state will help lower costs.”

In contrast to solar, battery and nuclear power, Sherrill has been less enthusiastic about coal, previously saying that New Jersey is importing “dirty and expensive energy” from other states – a situation that “has to stop.”

The congresswoman has also called for more transparency from utility companies like PSE&G, JCP&L, Atlantic City Electric and Rockland Electric to avoid “price gouging and collusion” – an allegation that other New Jersey lawmakers have made.

• See Related: Utility Companies Are Exploiting NJ Residents, Senator Says (Op-Ed)

Meanwhile, utility companies have argued that officials are pointing their fingers in the wrong direction.

Last August, the New Jersey Utilities Association – a trade group for investor-owned utilities in the state – issued a statement on behalf of its member electric companies: Atlantic City Electric, Jersey Central Power & Light/ A FirstEnergy Co., Public Service Electric & Gas Company and Rockland Electric Company.

“We share New Jersey residents’ frustration with the significant bill increases from higher energy supply costs,” wrote the association’s president and CEO, Rich Henning.

“It’s important to remember that New Jersey electric companies don’t control or earn any profit from electric supply prices,” Henning continued. “We have been sounding the alarm on the power supply-demand imbalance and advocating for market reforms for years.”

New Jersey imports more than 40 percent of its electricity – almost half – from the PJM market, Henning said.

“Per a 1999 state law, electric companies in our state are not allowed to build and own power generation, which has precluded all New Jersey electric companies from developing or offering new sources of power supply to meet rising demand and reduce prices,” Henning stated.

• See Related: NJ Electric Companies Say They Share Customers' Frustrations With High Bills

Sherrill has previously called for immediate action from PJM and the state BPU.

“New Jersey’s grid operator, PJM, has refused to connect enough new, cheap and clean energy generation to the grid for years, but New Jersey waited to act until we were hit with a 20 percent rate increase,” Sherrill said on the campaign trail last year.

“The result is that we don’t have enough in-state generation to keep costs low and we risk missing our clean power targets,” Sherrill said. “That is unacceptable.”

“In my administration, Board of Public Utilities nominees, who hold huge power over rate hikes, will share my commitment to driving down energy costs above all else,” she added. “If they don’t, they shouldn’t get too comfortable.”

• See Related: Murphy Calls For Investigation Into High Energy Costs

New Jersey’s four investor-owned electric distribution utilities also play a part in the rising cost of electricity, Sherrill said in her executive order.

Although they don’t earn a profit from the provision of electric supply, these companies do earn a profit on qualifying investments in transmission and distribution infrastructure, as they earn a return on those investments from electricity customers at rates approved by the New Jersey Board of Public Utilities. Electric distribution utilities also pass through to customers operating and maintenance expenses, as well as property depreciation, at rates approved by the BPU, the governor's executive order states.

• See Related: NJ's Rising Utility Prices Call For State Of Emergency, Gov. Candidate Says
• See Related: Trump Again Pauses All Offshore Wind Farms, Including Empire Wind 19 Miles Off Long Branch

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