Sherrill Declares Emergency Due to Soaring Electricity Costs

Today, Mikie Sherrill made headlines by declaring a statewide emergency in New Jersey due to soaring electricity costs. The crisis stems from excessive demand from data centers and shortcomings in the PJM grid, which serves 13 states.

Statewide Emergency Declaration

Upon taking office, Sherrill addressed the pressing issues surrounding electricity supply and affordability. During her inauguration, she signed executive orders that aim to tackle these challenges effectively.

Executive Actions

• Executive Order No. 1: This order focuses on providing immediate rate relief. It mandates a comprehensive review of utility costs and freezes electricity supply rate increases.
• Executive Order No. 2: This order concentrates on addressing the root of the problem, emphasizing the lack of sufficient power generation to meet growing demand.

PJM Grid and Demand Growth

The PJM grid predicts a 20% hike in peak electricity demand by 2030, primarily driven by the rapid expansion of data centers. Recent capacity auctions conducted by PJM have placed an additional burden of over $4 billion on New Jersey customers due to new obligations.

Alarmingly, the latest auction did not secure enough reserve capacity, creating an unprecedented shortfall. This gap equates to the annual electricity consumption of nearly every home in New Jersey.

Impact on Electricity Prices

Electricity prices for residents surged by more than 33% from June 2023 to June 2025, while average customer prices rose by nearly 30%. In 2024, PJM’s capacity prices skyrocketed by more than 800%.

Future Energy Initiatives

Sherrill is not only focusing on immediate fixes but also on long-term reforms. She established a Nuclear Power Task Force and directed state agencies to expedite energy projects to prevent blackouts and price hikes.

Moreover, Sherrill’s administration will investigate “ghost load” practices where speculative interconnection requests distort demand forecasts, particularly among large power users like data centers. This manipulation is believed to inflate costs for families and businesses throughout the state.

Mikie Sherrill’s swift actions signal a commitment to ensuring electricity affordability and reliability for New Jersey residents, establishing a foundation for future energy reforms.