Surging electricity prices have risen to the forefront of the New Jersey governor’s race — and could be a key issue in the 2026 midterms.
Nationwide, power prices have risen 6.2 percent over the past year, more than doubling the 2.9 percent inflation rate overall.
In New Jersey, household electricity rates were about 22 percent higher in July than the year before.
In the recent Garden State gubernatorial debate, both candidates mentioned the issue in their opening statements.
“We have an affordability crisis because of property taxes and electricity bills,” Republican nominee Jack Ciattarelli said.
“I am laser focused on driving down your costs, making New Jersey more affordable. I’m going to start by declaring a state of emergency on energy costs,” Democratic Rep. Mikie Sherrill (N.J.) said.
Experts say the rising rates are due to both increased demand from new and planned data centers and not enough supply connecting to the grid to meet that demand.
“Governors have limited ability here,” said Arah Schuur, a research specialist at Rutgers University’s Center for Urban Policy Research.
Schuur said PJM, the regional grid operator that is responsible for providing electricity to about a dozen states including New Jersey, “really holds the reins when it comes to bringing on new supply.”Another piece of the puzzle is the timeline for getting new power on the grid, which can be lengthy as projects await financing and approval to connect.
“Economics, policy, PJM’s regulations, [have] all caused supply constraints,” Schuur said.