Stockton University Panel Highlights Challenges and Uncertainty in New Jersey's Energy Future
Richard Henning, President & CEO of the New Jersey Utilities Association, was a key panelist at the event.
An online panel hosted by the William J. Hughes Center for Public Policy at Stockton University recently examined New Jersey’s evolving energy landscape. The event followed a Stockton Polling Institute report indicating that most residents want energy affordability prioritized, even as the state pursues renewable energy expansion.
Panelists at the July 9 event included:
Richard Henning: President & CEO, New Jersey Utilities Association
Christine Guhl-Sadovy: President, Board of Public Utilities (BPU)
Erick Ford: President, New Jersey Energy Coalition
Christina Renna: President & CEO, Chamber of Commerce of Southern New Jersey
Energy Capacity and Supply Concerns
With the BPU working to finalize a new state energy master plan before Governor Phil Murphy’s term ends in January, panelists agreed on the urgent need to boost New Jersey’s electricity generation. Ford underscored that New Jersey, like Maryland, is a net importer of electricity—a vulnerability as demand outpaces supply. He noted that older power sources have exited the grid without replacements ready, exacerbating the state’s exposure to market fluctuations.
Guhl-Sadovy attributed recent, sharp increases in demand—especially since 2023—to the rise of large data centers powered by artificial intelligence, arguing these surges were unpredictable. Christina Renna cautioned against blaming data centers alone for high energy costs, emphasizing that New Jersey’s economic future depends on embracing digital infrastructure. She advocated for a state energy plan that supports a more digital economy and called for workforce development to match this shift.
Historical and Structural Challenges
Henning reminded the audience that these issues have deep roots, tracing back to the 1999 deregulation of New Jersey’s electricity market. Since then, utilities have largely exited power generation, relying instead on the PJM Interconnection—a regional grid operator covering 13 states. Governor Murphy has criticized PJM for the state’s current supply-demand imbalance.
Innovation and the Road Ahead
All panelists stressed that innovation is essential for New Jersey’s energy future. However, they agreed that new power sources—such as solar and storage technologies—are likely five to ten years away from making a significant impact. Any relief for consumers through increased supply will be a long-term process, not an immediate fix.
The panel expects the new energy master plan to be completed before Murphy leaves office, but its fate under a new governor remains unclear. Henning described the plan as a “blueprint” for the next administration, but it’s uncertain whether Republican Jack Ciattarelli or Democrat Mikie Sherrill would continue Murphy’s energy vision.
Offshore Wind and Federal Influence
Guhl-Sadovy praised the Murphy administration’s efforts, but sidestepped the fact that New Jersey’s offshore wind ambitions suffered a setback in October 2023 when Orsted, a Danish company, withdrew from two major wind projects. Governor Murphy responded by raising offshore wind targets, even as other developers encountered mounting obstacles. The Trump administration’s opposition to offshore wind now complicates state planning, though the sector was already facing challenges before the 2024 election.
Guhl-Sadovy also mentioned a new cap on PJM auction prices, introduced after a complaint by Pennsylvania Governor Josh Shapiro and supported by Murphy, in hopes of curbing further price hikes.
Rising Costs and Policy Trade-Offs
Panelists highlighted the need for major investments to modernize the grid and acknowledged rising costs across the board. While there are programs to help those struggling with utility bills, expanding assistance may not be enough as more households face affordability issues.
Additionally, the state’s practice of reallocating funds came under scrutiny. Recently, $140 million earmarked from the clean energy fund—financed by utility customer fees—was diverted to support NJ Transit, despite lawmakers’ stated commitment to addressing energy costs.
Looking Forward
With the Murphy administration’s time winding down, the release of a new energy master plan is imminent. Yet, the panel discussion made clear that New Jersey’s energy future is marked by uncertainty. Progress will depend on technological innovation and investment, and consumers should brace for higher costs in the near term before any potential relief materializes.
